$1.4 bn question hangs over JSW-Volkswagen deal
The JSW Group, an Indian conglomerate, is seeking Volkswagen AG to bear a $1.4 billion local tax liability, potentially jeopardizing a partnership seen as vital to reviving the German automaker's presence in India's thriving car market. The agreement on a joint venture structure and other commercial terms has already been reached, but the deal's final valuation hinges on resolving the outstanding tax issue, which is currently under dispute in Indian courts.
JSW Group's investment would constitute a majority stake in Skoda Auto Volkswagen India Pvt., with the venture planning to manufacture and sell passenger vehicles, ranging from internal combustion engines to electric and hybrid options.
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