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The exclusive India accuses Kia to avoid $ 155 million in VW-like disputes


By Nikunj Ohri, Aditya Kallra and Aditi Shah

Neu -Delhi (Reuters) -India has accused the South Korean Kia to avoid taxes in the amount of $ 155 million by incorrectly classified component imports, but the car manufacturer has refused misconduct to the latest struggle of a foreign car manufacturer with Neu -Delhi Tariffs and two sources.

Kia competes with Hyundai and Maruti Suzuki on the third largest car market in the world, where it has a share of 6% of around 4 million units per year, and its Kia Seltos and Sonet Suvs are among the top sellers.

Foreign companies in India face headaches of high taxes and boring investigations.

For example, Tesla publicly complained to imported electric vehicles via high taxes and Volkswagen last week due to a demand for a record tax of 1.4 billion US dollars, which it described it as “incredibly enormous”.

In April 2024, tax officials sent a confidential message to the Indian unit of Kia, which described alleged tax evasion of 13.5 billion rupees. According to a state message that Reuters reports for the first time.

The crime focused on the incorrect explanation of the imports of components for the assembly of the luxurious carnival minivan of the automotive manufacturer, as the message showed.

In a statement to Reuters, Kia India said “a detailed answer, which was supported by comprehensive evidence and documentation in order to” prove their stand “and the authorities still examine the matter.

Kia India is committed to compliance with all regulations and “consistently worked with the authorities”, she added.

India’s Ministry of Finance and customs officers did not respond to Reuters questions.

In its 432-page announcement, the government said that the tax authorities had imported Kia’s carnival in parts or components in separate land over various ports, with the “intention to meet a lower customs tax”.

Kia has developed the strategy to ensure that imports “do not recognize from customs) (they could), which was added to the announcement, which was issued by a customs officer in the southern city of Chennai.

Two sources said that the case of Kia was similar to that of Volkswagen, which was accused of a tax rate of only 10% to 15%.

During the examination, the KIA website showed the carnival model sold in India in India with a retail turnover of 9,887 units between 2020 and 2022.

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