[Alpha Biz= Kim Jisun] Kia India's subsidiary has been accused of misclassifying imported auto parts and evading taxes worth approximately 200 billion KRW, according to a Reuters report on Wednesday (local time).
Citing multiple sources and official documents, Reuters reported that Indian tax authorities sent a confidential notice to Kia India in April last year regarding these allegations.
According to the 432-page notice, Kia India is accused of misclassifying imported components used in assembling its premium minivan, the Carnival, resulting in an alleged tax evasion of $155 million (approximately 224 billion KRW).
In response, Kia India told Reuters that it had provided a detailed response backed by comprehensive evidence and documentation, stating, "We are committed to complying with all regulations and have continuously cooperated with the authorities."
Reuters noted that foreign companies operating in India often face challenges due to high taxes and prolonged investigations.
Kia currently sells around 4 million vehicles annually in India, holding approximately a 6% market share.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
