Mumbai, May 9, 2013: Luxury carmaker BMW India could face a hefty Rs 650 crore notice from the Central Board of Excise and Customs. The government body has reportedly alleged that the company has imported semi-knocked down (SKD) kits of its cars at a duty level applicable for completely knocked down (CKD) kits. CKD kits attract a 10 percent customs duty, while 30 percent is the duty level for SKD kits.

A BMW India spokesperson informed Autocar Professional that an inspection is in process by the authorities at the BMW plant in Chennai. “We are co-operating with the authorities in the inspection process,” he said.

In an effort to enhance its competitiveness in the luxury car market, BMW India has strengthened its product portfolio this year with the launch of the new X1 SUV at the beginning of the year, followed by the new 7-Series saloon. The launch of the 1-Series, scheduled for later this year, will be crucial for BMW to fight against Mercedes-Benz and Audi in the emerging entry level premium car segment in India.