There is no denying to the fact that the high royalty payments by the country's largest passenger car manufacturer Maruti Suzuki to parent Suzuki Motor Corporation of Japan have dented the financials of Maruti in the first quarter.

But with the growing efforts to develop a technology hub in India for the automotive industry, which would be up and running by 2015, the opposite is set to happen, when the Japanese firm starts paying royalty to Maruti.

Maruti Suzuki chairman RC Bhargava recently said that as soon as Suzuki starts sourcing technology from the R&D centre of Maruti at Rohtak, the trend will automatically reverse.

It is to be mentioned here that Maruti's net profit declined 20% on account of higher royalty payout to Suzuki as it paid a royalty of Rs 188.70 crore or 5.9% of its total revenues during the quarter.

However, the R&D Centre of the company will be coming up only in 2015 and till then Maruti will have to deal with the issue of high royalty payments to its parent company as the dependence of Suzuki for Maruti is expected to be even higher in times to come.