Chinese auto manufacturer SAIC Motor Corp. Ltd. will enter the Indian market with a sport-utility vehicle, or SUV, under the Morris Garages brand of its subsidiary, MG Motor India, the Nikkei Asian Review reported March 21.
SAIC is hoping to sell its first SUV in the country in the second quarter of 2019.
The report said that passenger vehicle segment in the Indian market is growing swiftly and currently dominated by Suzuki’s Indian division Maruti Suzuki. India is the fifth largest market for automobiles, the report said.
SUV sales in India jumped 20% in 2017 to 870,000 units. SIAM estimates that SUV sales in 2018 will grow 20%, compared to 7% growth in sales projected for cars, the report added.
Rajeev Chaba, president and managing director of MG Motor India, said the company is looking to source 80% of the parts for the new automobiles from local vendors to maintain costs.
According to the report, SAIC will spend about $767 million over the next six years to support its new product endeavors. The company also plans to launch eco-friendly cars in India, the report said.