Why firms choose to open up intra firm alliances in transition economies, like India, above owned subsidiary?

Question

VW opened up a production line for audi in india in the same place where its skoda cars were getting manufactured. what made them take this step? how did it help them over a wholly owned subsidiary or an alliance with any other firm.

Answer 1

For American companies, its because democrats(primarily) have raised corporate taxes to the point where its cheaper to go to places like India.