Volkswagen is challenging India's $1.2 billion tax demand over alleged undervaluation of imported car parts.(Photo: Reuters)
By Aditi Shah India defended its record $1.2 billion tax demand against Volkswagen in a Mumbai court on Thursday, saying the German company never provided required information in time, while the carmaker argued the demand came years too late.
India has since 2024 alleged Volkswagen undervalued auto imports for years and paid below the full tariff rates. The case is a major overhang for the carmaker which is currently in talks with India's JSW to sell a stake in its India operations.
Volkswagen, which has a roughly 2% market share in the world's third biggest car market, denies the allegations, and has previously said the case is a matter of "life and death" for its India business, and is "impossibly enormous".
The dispute over India's biggest ever import tax demand restarted last week after the High Court in Mumbai said in August it would hear Volkswagen challenge afresh as judges failed to pass a ruling in time.