Skoda To Temporarily Stop The Import Of CBU Vehicles In India Amid Custom Duties Row: Report

Following the launch of the latest iteration of its flagship SUV, Kodiaq in India, Czech automaker Skoda has come out and stated that it is hitting the pause button for the import of CBU vehicles including diesel, petrol and electric cars till it gets a clarification from the Indian government on custom duties as stated in the report.

The report also highlighted that awaiting the finalisation of fuel efficiency norms from the Indian government under CAFE 3 (Corporate Average Fuel Efficiency), Skoda is also putting a hold on its plan to manufacture electric vehicles in the country.

Skoda had elaborate plans which could help the company establish its dominance in the premium vehicle segment in the country with the introduction of global models like Octavia, Octavia RS, Superb, Kodiaq and its all-electric SUV, Enyaq via the CBU route. However, with Skoda VW being involved with the authorities over tax row for misinformation of their imports has resulted in the company putting a halt over the import of these vehicles.

The Indian government had issued a tax evasion of about $1.4 billion to Skoda VW for using a “part-by-part import strategy” for evading taxes for importing vehicles. The automaker countered the government by filing a legal petition challenging the same. Now the automaker seems to be deploying a strategy by halting imports and delaying the production of electric vehicles in the country which could be a means to find a middle ground for their ongoing case or it could be an proactive approach for its lawful procession in the Indian market to avoid such troubles in the future.