According to the assessment of the Volkswagen-Panzalts the business of the German carmaker in India. If the Indian VW subsidiary has to pay the total sum of $ 2.8 billion in tariffs and punishments, this could cause it not to be able to survive, the lawyer said on Monday before an Indian court. “The matter is serious. It is now a question of life or death. “
In the Volkswagen Group, Skoda is responsible for the India business. The Indian authorities accuse the company of embezzling import duties of $ 1.4 billion. The company imported almost complete cars in a disassembled form and installed in the country. In order to benefit from lower customs sets, VW declared these imports as individual parts.
India raises a customs of 30 to 35 percent on finished car kits, and it is five to 15 percent on individual parts. VW had filed a lawsuit against the decision of the authorities.
The processes Back to twelve years ago. This has raised questions about the extent to which lengthy examinations hinder the business activities of foreign companies in the rapidly growing country. Volkswagen has hardly played a role on the Indian car market so far.