Piyush Goyal asks auto firms to reduce royalty payments to parent companies

Reduction in royalty can help them reduce the cash outflow, bring down the vehicle prices and help in boosting their domestic sales, Goyal added

Commerce and Industry Minister Piyush Goyal on Friday asked automobile companies present in India to reduce royalty payments to their parent firms as it would help them to sail through the crisis easily.

The minister said this while addressing the Society of Indian Automobile Manufacturers' (Siam) annual convention.

He said the automakers that hold a sizeable chunk of the country's auto market pay "millions of dollars as royalty" to their parent companies. Reduction in royalty can help them reduce the cash outflow, bring down the vehicle prices and help in boosting their domestic sales, he added.

"Goyal asked the automotive companies present in