Skoda Auto Volkswagen India has filed a case against tax authorities over the Rs 11,000 crore (about USD 1.4 billion) show cause notice for alleged customs duty fraud related to the import of cars as completely knocked down units.
Volkswagen said the 2-litre engines would get a software update.
Volkswagen started manufacturing operations in India earlier this year at its Chakan plant, rolling out the compact car Polo.
Volkswagen sold about 45,000 cars in India in the year to end-March, of which about two-thirds were Polo hatchbacks
Carmaker meets govt; agrees to give evaluation results by Nov-end.