Market Chatter: Volkswagen, India Face Off in Court Over $1.2 Billion Tax Demand

MT Newswires · 1d ago
04:23 AM EDT, 10/30/2026 (MT Newswires) -- India argued its case in a Mumbai court over a $1.2 billion tax demand against Volkswagen (VOW.F, VOW3.F), saying the German carmaker failed to provide requested records in time, Reuters reported on Thursday. Volkswagen countered that authorities had exceeded the legal time limit for reviewing its imports. Its lawyer said Indian law allows tax officials to review imports only for the previous five years, rather than the 12 years covered by the investigation. The Indian government has alleged that Volkswagen declared imported components as individual car parts and paid tariffs of 5% to 15%, instead of the 30% to 35% rate applicable to nearly fully assembled vehicles. Volkswagen did not immediately respond to a request for comment from MT Newswires. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)