India has accused South Korea's Kia of evading taxes of $155 million by misclassifying component imports but the carmaker has denied wrongdoing, the latest fight by a foreign automaker with New Delhi over tariffs,

Indian tax authorities have sent a confidential notice to South Korean car maker Kia Motors accusing it of evading millions of dollars in taxes. The amount could be as high as $155m (£125m) and the notice was sent in April last year, according to Reuters.

Several foreign companies, including Kia, Volkswagen, and Vodafone, are locked in high-stakes tax disputes with India over import duties and M&A levies, impacting investments and business operations.

India has accused South Korea's Kia of evading taxes of $155 million by misclassifying component imports but the carmaker has denied wrongdoing, the latest fight by a foreign automaker with New Delhi over tariffs,

Kia competes with Hyundai and Maruti Suzuki in the world's third-largest auto market, where it has a share of 6% of roughly 4 million units a year, and its Kia Seltos and Sonet SUVs are among the top sellers.

South Korea's Kia has been accused by India of evading taxes amounting to $155 million through misclassification of component imports, Reuters reported on Wednesday, citing a government document and two sources.