Skoda
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.
Skoda’s new 7-seater SUV is coming to India – Official Launch Imminent!
Skoda India has been showcasing its Vision 7S concept at the 2025 Auto Expo, and industry sources suggest that the production-spec version is likely to launch in India in 2027. The concept car is an electric 7-seater SUV that is expected to be Skoda’s flagship product in India. The production-spec version is expected to be available with 3-row seating and may not have the exact same design features as the concept car, which had a coupe-styled roofline and suicide doors.
The interior of the concept car featured a luxurious and tech-loaded design, with a 14.6-inch central infotainment screen that can rotate from portrait to landscape mode, an 8-inch digital instrument cluster, and an augmented reality heads-up display. The interior design also included a panoramic glass roof and electric adjustment for the front and middle-row seats.
As for the powertrain, the concept car had an 89kWh battery pack with a claimed range of 600 km, capable of fast charging up to 200kW, which can charge from 10-80% in just 30 minutes. While the production-spec details are yet to be disclosed, it’s likely that the production version of the Vision 7S will feature this powertrain, which may undergo slight changes to improve the range before its launch.
Top 10 Safety Stars: Mahindra’s Thar Roars, Skoda’s Kyalos Shines, Tata Punch EV Revolves and More – a Glimpse into India’s NCAP Crash Test Results
Here is a summary of the content in 400 words:
The Bharat NCAP (New Car Assessment Program) has been testing numerous cars since its inception, including electric vehicles from Mahindra and Tata. Almost every car tested by BNCAP has received a 5-star rating for both adult and child occupants. The top 10 cars that have secured the highest safety rating from Bharat NCAP are listed below.
The Mahindra XEV 9e, a recently introduced electric vehicle, scored a perfect full score in adult passenger protection, receiving 32 out of 32 points. The Mahindra BE 6, Skoda Kylaq, Hyundai Tucson, and Tata Curvv EV are among the other cars that have received 5-star safety ratings.
The Skoda Kylaq is the safest sub-compact SUV in its segment, with a perfect score in child occupant protection. The Mahindra Thar Roxx, Tata Punch EV, Hyundai Tucson, and Tata Curvv EV have also received 5-star safety ratings.
The Bharat NCAP tests are crucial in evaluating the safety features of cars in India. The agency has tested a range of cars, including electric vehicles, SUVs, and sedans.
The prices of the cars range from Rs 7.89 lakh to Rs 29.26 lakh. The Bharat NCAP crash tests have revealed that almost all the cars tested have received a 5-star rating, making them a safer choice for consumers.
Overall, the Bharat NCAP crash tests are a vital tool in evaluating the safety features of cars in India. The tests provide a comprehensive evaluation of a car’s safety features, helping consumers make informed decisions when purchasing a vehicle.
German carmaker Volkswagen is hit with a $1.4 billion tax bill from the Indian government, sparking a legal battle between the two entities.
Volkswagen has filed a lawsuit against Indian authorities to contest a tax demand of $1.4 billion, which the company claims is “impossibly enormous” and contradictory to India’s import tax rules. The demand was made after Volkswagen’s Indian unit, Skoda Auto Volkswagen India, was found to have imported car parts separately to avoid paying a higher duty on completely knocked down units (CKDs). The company argues that it had kept the government informed of its “part-by-part import” model and received clarification supporting this in 2011.
However, Indian authorities allege that Volkswagen’s local unit regularly placed bulk orders for cars through an internal software, which broke down the orders into 700-1,500 parts for each vehicle. These parts were then shipped separately over time, which the authorities claim was a ploy to clear the goods without paying the applicable duty.
Volkswagen’s primary argument is that it did not import car parts together as a single “kit”, but shipped them separately, combining them with some local components to make an entire car. If the company loses the case, it may have to pay $2.8 billion in total, including penalties, which is more than its entire sales in India in 2023-24.
The tax dispute comes at a time when Volkswagen is looking to cut costs to compete with Chinese rivals and deal with weak demand in Europe. The Mumbai High Court will start hearing the case on February 5, 2025. Volkswagen’s investment in India is $1.5 billion, and the company claims that the tax demand will put this investment at risk.
India serves as a springboard for Skoda’s global expansion, with the region’s success likely to boost sales in markets like ASEAN and the Middle East, according to the company’s CEO.
Skoda Auto, a Czech carmaker, has announced that India is a crucial market for its global growth strategy, ranking second only to Europe in terms of importance. The company has been present in the Indian market since 2000, with its first plant established in Chhatrapati Sambhajinagar (formerly Aurangabad). Over the past 25 years, Skoda has leveraged India’s talent pool, growing consumer demand, and access to other markets to make it a cornerstone of its international growth strategy.
As the Volkswagen Group’s Indian operations, Skoda Auto is responsible for spearheading activities in the country. With evolving consumer preferences, the company is introducing products that combine global expertise with an understanding of the Indian market. To deliver long-term value to customers, employees, and communities, Skoda is dedicated to enhancing its manufacturing capabilities, sales touchpoints, and sustainability initiatives.
The Indian market has become a strategic hub for the ASEAN region, the Middle East, Australia, and New Zealand. The company has multiple facilities in India, including assembly lines and manufacturing plants in Chhatrapati Sambhajinagar and Pune. Additionally, Skoda has established a technology center in the country and recently opened a modern logistics facility in October 2023 for the export of components to Vietnam, a market it entered in 2023. With its strong presence in India, Skoda is well-positioned to leverage the region’s growth potential and drive its own growth and success.
Skoda announces plans to launch its first electric vehicle for the Indian market, while Tata Motors makes a significant bet on local battery production, as Royal Enfield’s Hunter 350 hits a major sales milestone.
Here is a 400-word summary of the biggest developments in the world of automobiles:
The automotive industry is constantly evolving, making it difficult to stay up-to-date on the latest news. However, HT Auto is committed to providing timely updates on significant developments in the sector. Here are the key highlights for Saturday, January 25:
* Skoda Volkswagen India has announced plans to introduce its first Indian-developed electric vehicle (EV) by 2030. The move comes as the company looks to mass-market EVs from the premium group brands, Audi and Porsche, in the country.
* Tata Motors, India’s largest EV manufacturer, is betting big on locally manufactured batteries to maintain its lead in the fast-evolving EV market. The company’s push for domestic battery production will help it stay ahead of the competition.
* Royal Enfield’s Hunter 350 has achieved a significant milestone, crossing 5 lakh sales. The motorcycle was introduced in August 2022 and has quickly become one of the most popular motorcycles for the brand.
* Triumph India has teased two new motorcycles, the Speed Triple 1200 and Speed Twin 1200 RS, which are expected to launch on January 27. The motorcycles boast a three-cylinder engine and a twin-cylinder engine, respectively.
These developments highlight the rapidly changing landscape of the automotive industry in India. With new technologies, models, and innovations being introduced, it is crucial for car enthusiasts and industry followers to stay informed about the latest news and updates. HT Auto is committed to providing this information through its daily summaries, keeping readers informed about the latest developments in the world of automobiles.