Skoda
The rumors are true! Volkswagen Polo’s comeback to India is imminent, and we can’t wait to see what exciting features it will bring!
The iconic Volkswagen Polo, a favorite among Indian car enthusiasts, has been discontinued since 2022. However, there are whispers that the brand may be making a comeback, but not as a traditional hatchback. Instead, it might return as a new SUV or crossover. Although the company has not officially confirmed this, the possibility is high.
The Polo has been a beloved car in India, praised for its sleek styling, solid build quality, and impressive performance. Its absence has left a void in the market, but its residual value has only appreciated, with some owners even selling their vehicles for the same price they purchased them for a few years ago. The used car business has also seen a significant surge, with 33,000 units expected to be sold by 2024.
Reviving the Polo brand, which has a strong recall in India, could be a game-changer for Volkswagen. A new sub-4m SUV, potentially based on the Skoda Kylaq platform, could fill the gap in the entry-level segment and bring in volume and profitability. The company is considering various options, including this possibility.
Moreover, Volkswagen has other new launches planned, including the Golf GTI and Tiguan R Line, which will be sold through select dealerships to provide the best ownership experience. However, the Polo remains a crucial vehicle for the brand, particularly in the mass market space, with 4 lakhs out of 7 lakhs units sold in India being Polos, accounting for 60% of the company’s volume.
Skoda-VW reportedly considering licensing EV platform from Tata, Mahindra, or JSW for their future electric vehicle offerings.
Skoda Auto, a subsidiary of the Volkswagen Group, is considering licensing an electric vehicle (EV) platform from three Indian companies: Tata, Mahindra, or JSW Gaadi. This move is part of Skoda’s strategy to expand its EV offerings globally, especially in the Indian market.
The partnership would allow Skoda to tap into the growing demand for EVs in India, which has been identified as a key market for the company’s future growth. Additionally, the partnership would provide Skoda with access to a proven EV platform, which would enable the company to accelerate its electric vehicle development and launch new models quickly.
Tata, Mahindra, and JSW Gaadi are all well-established players in the Indian automotive industry, with a strong presence in the domestic market. They have already developed EV platforms and have a good understanding of the local regulatory framework, which would be beneficial for Skoda as they enter the Indian market.
The partnership with one of these companies would provide Skoda with a competitive edge in the Indian market. It would also enable the company to participate in the growing EV market, which is expected to become a significant contributor to the country’s automotive industry in the years to come.
The licensed EV platform would be designed to meet the changing needs of the Indian consumers, who are increasingly turning to electrified vehicles. The partnership would also provide an opportunity for Skoda to explore new business opportunities, such as battery swapping and EV charging infrastructure development.
The potential deal is still under consideration, and no final decision has been made. However, the talks are said to be at an advanced stage, and a formal announcement is expected in the coming months. If successful, the partnership would be a significant step forward for Skoda’s Indian operations and a key milestone in the company’s EV strategy.
In conclusion, the potential partnership between Skoda and one of the Indian companies, Tata, Mahindra, or JSW Gaadi, has the potential to be a mutually beneficial deal. It would allow Skoda to tap into the growing Indian EV market, while the Indian company would gain access to a global brand and their expertise in the automotive industry. The partnership would be a significant development in the Indian automotive industry and a strong step forward for Skoda in the electric vehicle segment.
Skoda celebrates 25 years in India with new prices; adventure begins from… ₹ [insert price] for Kushaq and Slavia.
Skoda Auto Volkswagen India Pvt Ltd (SAVWIPL) has updated its Kushaq and Slavia models with new features and revised prices to celebrate its 25th anniversary in India. The 2025 Kushaq and Slavia models come with a range of additions, including connectivity, alloy wheels, electric sunroof, and more. The Kushaq and Slavia Classic trims now come with connectivity as standard, while the Onyx trim adds more premium features such as 17-inch alloy wheels, auto-dimming IRVM, and rain-sensing wipers.
The Kushaq Signature trim has seen a significant redesign with a starting price of Rs 14.88 lakh (ex-showroom). The Slavia Signature trim, which was previously mid-spec, now features LED headlights, LED DRLs, and an electric sunroof, among other features, with a starting price of Rs 13.59 lakh (ex-showroom).
The updated models also come with extended warranties, with a 5-year or 1,25,000 km warranty (whichever earlier) for the Kushaq and a 3-year or 1,00,000 km standard warranty (whichever is earlier) for the Slavia. The prices of the 2025 Skoda Slavia and Kushaq start from Rs 10.34 lakh and Rs 10.99 lakh, respectively, for the Classic trims.
Overall, the updates aim to provide more value to customers, with the addition of new features and extended warranties.
Skoda Auto and Volkswagen come under heightened scrutiny by the tax authorities following allegations of tax evasion.
The Bombay High Court has expressed “prime facie” dissatisfaction with Skoda Auto Volkswagen India’s arguments against a USD 1.4 billion notice from the Customs Department. The company is challenging a September 2024 show-cause notice issued by the Customs Department, which claims that Skoda Auto Volkswagen India allegedly provided misleading information by misclassifying its import of Audi, Skoda, and Volkswagen cars as “individual parts” instead of “Completely Knocked Down” (CKD) units, thereby paying significantly lower customs duties.
The Customs Department asserts that the company should have declared its imports as CKD units, which attract a customs duty of around 35%, instead of declaring them as separate components and paying only around 15% duty. The High Court has questioned the company’s argument, saying that if almost all the parts are imported as individual components and then assembled in India, it should be classified as a CKD unit.
The HC bench has also stated that the 2011 notification specifying that there should not be a method to circumvent the notification, and if all importers do the same thing, the notification will be just a paper. The company, however, claims that the demand of over Rs 12,000 crore customs duty is “exorbitant”, “arbitrary”, and “illegal”, and that it has followed the correct classification and paid tax accordingly. The company’s lawyer, Arvind Datar, argued that a notification was issued in 2011 imposing 35% tax on CKD models, and the company had classified itself as importing individual parts, paying tax accordingly. The HC has not yet decided whether to entertain Skoda Auto Volkswagen India’s plea, expressing “prime facie” dissatisfaction with the company’s arguments.
Skoda Volkswagen Accuses No One of Playing the Victim; Customs Officials Challenge Tax Notice in Court
The Skoda Volkswagen brand has been told by the court that it cannot “play the victim card” over a tax notice issued by the Indian Central Board of Indirect Taxes and Customs (CBIC). The notice was issued in 2020, seeking to recover over Rs 3,600 crore in GST and Customs duty from the company.
The court’s observation came as the carmaker had claimed that it was facing “hostile” treatment from the board, and that the tax notice was a result of “biased” assessments by the CBIC. However, the court was not convinced by these claims, stating that the company was not a “victim” in the matter.
The court’s decision is seen as a significant setback for the company, which had been resisting the tax notice for over a year. The company had claimed that the notice was the result of a “misguided” perception by the CBIC, and that it had been mistreated by the tax authorities.
However, the court was not convinced by these claims, and instead noted that the tax notice was based on “reasonable” grounds. The court also observed that the company had failed to provide any “credible” evidence to support its claims of biased treatment.
The court’s decision is significant not just for Skoda Volkswagen, but also for other companies that may be facing similar tax notices. The ruling sets a precedent that companies cannot unilaterally claim to be “victims” without providing sufficient evidence to support their claims.
In its order, the court noted that the company had been subjected to rigorous audit and investigation, and that the tax notices were issued after “meticulous” scrutiny of the company’s affairs. The court also observed that the company had failed to provide any “credible” evidence to support its claims of biased treatment, and that it was not a “victim” in the matter.
The court’s decision is seen as a significant victory for the CBIC, which has been accused of being overly aggressive in its tax collection efforts in recent years. The ruling is also a setback for companies like Skoda Volkswagen, which had been trying to fight tax notices by claiming to be “victims” of biased assessments.
Rumors are circulating that the Indian government may force Volkswagen to return its office to Germany
Volkswagen is facing a significant crisis in India after being accused of evading taxes worth Rs 12,172 crore by the Maharashtra Customs department. The brand’s lawyer has labeled this situation as a “life and death” issue for the brand, sparking concerns that it may be forced to shut down its operations in the country. The customs department alleges that Volkswagen misclassified imports of Audi, Skoda, and Volkswagen vehicles as “individual parts” to evade higher customs duties, resulting in a penalty of 100% of the evaded duty, which amounts to Rs 24,544 crore, the largest penalty ever imposed on a carmaker by the Indian government.
The customs department has issued a show cause notice for 33,000 transactions between 2012 and 2024, and a Volkswagen official has confirmed that over 100 consignments were detained since the notice was issued in September 2024. However, the customs department has assured the Bombay court that no consignments belonging to the group have been detained and will not detain any such consignments in the future.
Despite the legal battle, Skoda Volkswagen has stated that it will continue to import its products into the country and is set to launch its global offering, the Golf GTI, in India soon. The brand’s lawyer has argued that the customs department has not issued a show cause notice in 12 years and has not provided any explanation for the sudden notice. If the penalties are not relieved, it remains to be seen whether Volkswagen will be forced to shut down its operations in India, which would have significant implications for the country’s automotive industry.
Skoda Auto Volkswagen Grants Reassurance from Customs Department Amid Import Concerns
The Bombay High Court is currently hearing a case between the Customs Department and Skoda Auto Volkswagen, a German automaker, over a $1.4 billion tax demand notice issued by the Customs Department in September 2024. The notice alleged that the company imported car parts as individual units rather than as “completely knocked down” (CKD) kits, which attract higher import duties. Skoda Auto Volkswagen claims that this is a tax evasion scheme, while the company argues that it has been importing individual car parts for over 20 years and has always paid duties as per the individual parts classification.
The Court has heard the case extensively and questioned the company’s method of importing car parts, suggesting that it may be a way to circumvent tax laws. The Customs Department, however, has assured the court that it has not and will not block any of Skoda Auto Volkswagen’s consignments. The case is scheduled for further proceedings on February 20.
Skoda Auto Volkswagen’s counsel, Arvind Datar, has argued that the company’s method of importing individual car parts is not a new practice, and the authorities had consistently cleared its imports from 2011 to 2024, with duties paid as per the individual parts classification. He also pointed out that the Customs Department had not raised any issues with the company’s imports until a customs officer at Mumbai’s Nhava Sheva port unilaterally decided in 2024 that the company’s imports should be classified as CKD.
The Customs Department, on the other hand, claims that Skoda Auto Volkswagen misclassified its imports of Audi, Skoda, and Volkswagen vehicles, declaring them as separate components instead of CKD units, which attract a 30-35% import duty. The company allegedly paid only 5-15% duty, significantly reducing its tax liability. The case highlights the complex and sometimes contentious relationship between tax authorities and multinational corporations, with the High Court seeking to clarify the facts and determine the validity of the tax demand.