Govt urges auto firms to cut royalties to foreign parents: Report

Maruti Suzuki and Hyundai Motor India pay millions of dollars in royalties to parent companies in Japan and South Korea for using their technology and brands.

Commerce minister Piyush Goyal has asked automakers to find ways to reduce royalty payments to foreign parent companies for use of technology or brand names, two sources told Reuters, in an effort to boost local investment and reduce outflows.

In India's competitive auto market, top-selling carmakers Maruti Suzuki and Hyundai Motor's local unit pay millions of dollars in royalties to parent companies in Japan and South Korea for using their technology and brand to build and sell cars.

Goyal, in a meeting last week, asked officials from groups representing carmakers and auto parts manufacturers to review such payments with a