Japanese auto giant Honda Motor Co, on Monday, said India must remove the ceiling on new model introduction fees and royalty that a parent company charges from its Indian subsidiaries or joint venture to facilitate technology transfer.

“Honda is committed to increase localisation levels of products produced in India and technology transfer. For this we need abolition of ceiling limits imposed on initial model introduction fees and royalty,” Honda Motor Co Chairman Satoshi Aoki said here.

He said then the parent company would be encouraged to transfer technology to its subsidiaries if such a ceiling was removed.

“We invest billions of dollars in Honda Japan and there must be a way of recovering it from overseas subsidiaries and partners,” he added.