The company that sells close to half of the cars that are being sold in the country, Maruti Suzuki was recently hit by the disappointing first quarter results in which it reported that its PAT was down by 20%.

It is to be mentioned here that the company was suffering from a high royalty payments that was made by the Indian subsidiary to its parent, Suzuki Motor corporation.

However, the company does not see the royalty payment going up further from the 5.1% amount that it paid to Suzuki in the last quarter.

Company managing director and chief executive officer Shinzo Nakanishi said that there is no possibility of the royalty payment to jump beyond the 5.1% level.

Industry watchers have also questioned the transparency level of the company in the Indian automobile market after it surprised the investors twice i.e. by announcing a surprise recall of A-Star and secondly by hiking the royalty payment to its parent company.

It is believed that the dependence of Maruti on Suzuki will go only higher in the coming times and the announcement that the royalty payment will not go any higher from now is surely a surprise.