There is no denying to the fact that the Indian market leader in the passenger cars segment, Maruti Suzuki was never disturbed by the competition but it has got a new hurdle in the form of royalty payments which is taking its own toll from the company.

In fact, the over-dependence on its Japanese parent for launching new models in quick succession is proving costly for Maruti Suzuki.

As there was a sharp jump in the royalty payments, Maruti Suzuki reported a 20% fall in net profit to 465 crore despite a 27% YoY jump in net sales. While the company suffered because of the use of Suzuki's technology and brand, as the company doesn't divulge the exact royalty payments, the other expanses head was up 42% on an aggregate basis during the quarter and 14% on a per unit basis.

Moreover, keeping in mind the facts like the RTF commitments of the company, the possibility of a further rise in metal prices and its capex, the future seems even more challenging for the company.

The rising competition in the small car segment is hurting its plans all the more.