Due to saturation impact in iron and thermal changes of stator and rotor windings induction motor (IM) is especially non-linear system. This non-linear system control can be solved by using theory of adaptive control with observer theory application. In this paper is analyzed IM sensorless vector control system based on MRAS (Model Reference Adaptive System). Estimation of rotor flux, rotor speed and stator resistance identification is based on known stator voltages and currents. In this paper has been analyzed saturation of mutual inductance in the low speed region and impact of changes of stator and rotor resistance. Mutual inductance Lm is chosen by method described in reference.