Kia hit with $155M tax evasion fine.

• India accuses South Korea’s Kia of evading $155 million in taxes by misclassifying component imports.

• Kia denies the allegations, citing competition in the world’s third-largest auto market.

• Kia competes with Hyundai and Maruti Suzuki, with its Kia Seltos and Sonet SUVs being top sellers.

• Foreign companies in India face high taxes and lengthy investigations, similar to Tesla’s complaints about high taxes on imported EVs and Volkswagen’s lawsuit over $1.4 billion in back taxes.

• Kia India has made a detailed response, supported by comprehensive evidence and documentation, and the authorities are still reviewing the matter.

• The government found Kia’s Carnival car model was being imported in parts or components in separate lots via different ports, with the intention to discharge lesser customs duty.

• Kia’s case is similar to that of Volkswagen, accused of evading a higher tax of 30% to 35% applicable on parts imported in “completely knocked down” or CKD form in a single shipment.

• If Kia loses the dispute, it could face up to $310 million or roughly double the amount evaded due to penalty and interest.

• Kia’s domestic annual sales of $4.45 billion in fiscal 2022/23 were its highest ever, up 53% on year, for net profit of $243 million.

• Kia has deposited ₹278 crore ($32 million) “under protest” as it continues to fight the Indian tax notice.