Kia India Faces $155 Million Tax Evasion Allegations Over Misclassified Car Parts

Kia Unveils \'Syros\' at Kia India Plant
Kia Unveils ‘Syros’ at Kia India Plant

On Wednesday, Reuters reported that Kia India was accused of misclassifying imported auto parts and evading taxes worth hundreds of billions of won.

Reuters revealed that tax officials sent Kia India a confidential notice in April last year outlining these allegations.

According to the notice, Kia India is suspected of misclassifying imported components used in the assembly of its luxury minivan, the Carnival.

Given that parts imported in a completely disassembled state are subject to a 30–35% tax rate, the tax authorities estimate that Kia evaded a total of $155 million. Officials believe that Kia had misclassified imported components to avoid paying higher tariffs.

If Kia India loses its court case, it could face penalties of up to $310 million, double the alleged unpaid taxes.

Kia India stated, “We have provided a detailed response to the tax authorities, supported by comprehensive evidence, and have been fully cooperative throughout this process.” The Indian Ministry of Finance and customs authorities have not yet commented.

Kia competes for market share in India, the world’s third-largest car market, alongside competitors Hyundai and Maruti Suzuki. Kia holds a 6% stake in the Indian market, where approximately 4 million passenger vehicles are sold annually.

Meanwhile, high taxes and lengthy tax evasion investigations make it difficult for foreign automakers to broaden their business in India. Volkswagen has sued for $1.4 billion in allegedly unpaid taxes, and Tesla has publicly criticized its displeasure with the high taxes on imported electric vehicles.

Leave a Reply

Your email address will not be published. Required fields are marked *

  • Latest Automotive News

    altima-spy shots-nissan
    Can the Nissan Altima Make a Comeback? New Spy Shots Suggest It Might
    Mitsubishi delica facelift
    Mitsubishi Delica D:2 Facelift: New Design, Better Fuel Economy, and Enhanced Safety
    EQL-escalade-suv
    Escalade IQL: The 229-Inch Luxury SUV That Redefines Sophistication
    CP-2023-0051-25233451-thumb
    Kia Telluride Named Best Family SUV—6th Year in a Row
    CP-2024-0027-25233019-thumb
    Renault 5 Turbo 3E Blasts Into the Future—0-62 mph in 3.5 Seconds

    Tranding Now

    x-head
    Suzuki X-HEAD: The Off-Road Beast That Never Got Produced
    CP-2023-0186-23994880-thumb
    Audi Unveils 2025 A5 Price in U.S. Market, Starting at $48,995
    CP-2023-0065-21859249-thumb
    Mitsuoka Buddy: The Retro SUV That Turns the Toyota RAV4 Into a Classic
    CP-2023-0065-21470914-thumb
    19-Year-Old Arrested for Reckless Driving at 125 MPH on California’s PCH
    BELT-defect-porsche
    Porsche 911 Recall: Seatbelt and Headlight Problems Impact 878 Vehicles
    CP-2023-0397-25236212-thumb
    Tesla in Trouble: Analyst Warns Musk’s Political Ties Are Hurting the Brand
    CP-2023-0397-23141679-thumb
    Volkswagen Prepares ID.1 for 2025 Launch: Affordable, High-Tech, and Stylish
    CP-2023-0397-23398962-thumb
    Nissan and Honda's $60 Billion Merger Plans Go Up in Smoke
    CP-2023-0051-24259258-thumb
    Kia Thrives in India: Sales Up 23.8% with Syros Leading the Charge
    jeep-compass-2025
    Jeep Compass Returns with a Sleeker Look and Latest Technology for 2025

  • Recommended

    altima-spy shots-nissan
    Can the Nissan Altima Make a Comeback? New Spy Shots Suggest It Might
    Nissan is testing a new sedan, hinting at a possible next-gen Altima, despite declining sedan sales and...
    Mitsubishi delica facelift
    Mitsubishi Delica D:2 Facelift: New Design, Better Fuel Economy, and Enhanced Safety
    Mitsubishi unveils facelifted Delica D:2 models with updated design, improved efficiency, and advanced...
    EQL-escalade-suv
    Escalade IQL: The 229-Inch Luxury SUV That Redefines Sophistication
    Cadillac launches the Escalade IQL, a longer luxury SUV with enhanced performance, spacious interior,...
    CP-2023-0051-25233451-thumb
    Kia Telluride Named Best Family SUV—6th Year in a Row
    Kia's Telluride and EV9 win top family vehicle awards, showcasing excellence in safety, comfort, and...
    CP-2024-0027-25233019-thumb
    Renault 5 Turbo 3E Blasts Into the Future—0-62 mph in 3.5 Seconds
    Renault revives the iconic 5 Turbo with the electric 3E, featuring 540hp, 0-100km/h in 3.5s, and limited...
    CP-2022-0212-25057673-thumb
    Renault Tackles EV Fires Head-On—New Tech Slashes Response Time
    Renault emphasizes safety as a core value, developing innovative fire response technologies for electric...
    kia-boyz-back-theft-brand-reputation
    Kia Boys Are Back – Car Thefts Surge Despite Security Fixes
    Kia face ongoing vehicle thefts, raising concerns among owners despite anti-theft measures. Damage and...
    CP-2023-0225-25137090-thumb
    Subaru Unveils Four Special Editions – Levorg, Impreza, and Crosstrek Get Stylish Upgrades
    Subaru launches four special edition models in Japan, emphasizing stylish design and emotional appeal...