Maruti pays close to 22000/ vehicle as the royalty to suzuki for using its techno

logy. suzuki is the parent of Maruti the royalty has gone up close to 6.6 times
in past 15 years.
royalty payments are close to 6% of net sales
Royalty payments are not put to vote, as these are classified as transactions in
ordinary course of business, and done at arms length pricing. Securities and Exc
hange Board of India norms, too, do not mandate securing shareholders nod, as the
value of the royalty payout rarely exceeds 10 per cent of the net worth.
ar market leader Maruti Suzuki India Ltd will start paying royalty to its Japane
se parent in rupees instead of yen on the new models starting this financial yea
r, reducing the impact of cross-currency volatility on its financials.
Japanese automaker Suzuki Motor Corp on Tuesday said its wholly owned car plant
in Gujarat, where a total investment of Rs 18,500 crore has been envisaged, will
begin operations from next year.
The Gujarat facility is also Suzuki Motors first wholly owned car plant in India
and being set up bypassing its Indian unit. This plant will supply vehicles and
components exclusively to Maruti Suzuki India Ltd. India is its biggest market.