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Asia300

Maruti Suzuki board approves reduced royalties for Japanese parent

India's largest carmaker sees Q3 net profit up just 3% after tax headwind

Royalties to Suzuki Motor paid by its Indian subsidiary are to be reduced in the wake of local tax increases.

NEW DELHI -- Maruti Suzuki India has board approval to reduce the royalty payable to majority shareholder Suzuki Motor on new models starting with the Ignis hatchback, subject to the agreement of its Japanese parent.

India's largest passenger carmaker has been paying about 5% royalty on net sales to Suzuki Motor, and a reduced formula has been under discussion for some time. Suzuki Motor owns 56% of the Indian automaker

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