Cars in India | Autoportal.com

Grab Exciting Deals on New Cars! Hurry, Limited Period Offer!

Maruti to pay royalty to parent company Suzuki MotoCorp in INR

Maruti to pay royalty to parent company Suzuki MotoCorp in INR

Snapshot: Country's largest automaker Maruti would now pay royalty to its parent company the Japanese Suzuki Motor Corp in Indian currency. The royalty was earlier paid in Japanese Yen instead of Indian Rupee...

- Comments    |    Write Comment

Country's largest automaker Maruti would now pay royalty to its parent company the Japanese Suzuki Motor Corp in Indian currency. The royalty was earlier paid in Japanese Yen instead of Indian Rupee. Maruti Suzuki India (MSI) Chairman R C Bhargava, while speaking to stakeholders at company's annual general meeting, said that this move would keep the company away from fluctuations in the foreign exchange. 

"Royalty to Suzuki will now be paid in Indian rupee price and not yen, so that we won't be affected by foreign exchange fluctuations," Bhargava said. "More and more R&D work will be done in India and royalty calculation will be based on work done here and our expenditures on R&D will be rewarded in the form of reduced royalty," he added. Maruti Suzuki India paid a royalty of Rs. 689 crore, 6.2 per cent of its net sales, to the parent company in the first quarter that ended on June 30, 2014. However, the Indian unit of company is hopeful of lowering down this royalty sum with its upcoming compact SUV as its engineers enhance their role in the joint development of future products.

Maruti is also investing around Rs 2,000 crore on a research and development facility, including a test track at Rohtak in Haryana. It will be entering the SUV segment in the country early next year. "Maruti has not been present in the SUV segment and Suzuki Japan has been aware of it. Early next year we will launch our SUV and a compact SUV will follow a year later. With these we will have sizeable presence in the SUV segment and fill unutilised capacity at Gurgaon and Manesar plants," Bhargava said. Bhragava also requested the shareholders to vote excessively in the voting process that is scheduled to take place sometime later in the next month so that Suzuki own and invest at the Gujrat facility.

Related car news

  • Toyota and Suzuki Agree to Take Partnership Ahead 25-05-2018 Mainak Toyota and Suzuki Agree to Take Partnership Ahead
  • Current offers on Maruti, Hyundai, Honda, Tata & Ford Cars – May 2018 24-05-2018 Davender Soni Current offers on Maruti, Hyundai, Honda, Tata & Ford Cars –...
  • Maruti Suzuki Ciaz Facelift to Launch in Early August 2018 18-05-2018 Mainak Maruti Suzuki Ciaz Facelift to Launch in Early August 2018
  • New Maruti Suzuki Ertiga Spied Revealing 6-Speed Manual Transmission 17-05-2018 Mainak New Maruti Suzuki Ertiga Spied Revealing 6-Speed Manual Tran...
  • Toyota Rush Gets Five-Star Rating In ASEAN NCAP Crash Test 14-05-2018 Autoportal Team Toyota Rush Gets Five-Star Rating In ASEAN NCAP Crash Test
  • Maruti Suzuki Launched Ertiga Limited Edition at Rs 7.80 Lakh 11-05-2018 Mainak Maruti Suzuki Launched Ertiga Limited Edition at Rs 7.80 Lak...
Helpline