Skoda Auto Volkswagen India reaches Bombay High Court against show cause notice, know the whole matter

Customs officials have accused Skoda Auto Volkswagen India of providing incorrect information about the import of cars and taking undue advantage of the exemption in customs duty. According to the allegation, this fraud was done regarding the cars that were brought to India as completely knocked down (CKD) units.

Brands like Audi, VW, and Skoda come under the Volkswagen Group, which imports cars as CKD and assembles them in India. These include cars like Octavia, Superb, Kodiaq, Passat, Jetta, and Tiguan.

It is alleged that the company saved customs duty by importing car parts as separate units, whereas according to the rules, higher import duty is applicable on CKD units.

In 2019, Volkswagen Group India received approval to merge its three passenger car subsidiaries into Skoda Auto Volkswagen India. The move was aimed at better coordination and increasing the share of Skoda and Volkswagen in the Indian market by 2025.

Apart from this, in July 2018, Volkswagen Group announced an investment of 1 billion euros under the India 2.0 project.