A few months back Kia had reported that it had lost around 1000 engines from its factory in Andhra Pradesh. A new update upon the ongoing investigation has revealed that two former KIA employees allegedly collaborated with Scrap Dealers to divert the engines over a span of three years using forged documents, manipulated gate passes and other documents. KIA has revealed that the the cost of the engine theft stood around $2.3 million.
Kia had previously elucidated that such theft could have had broader ramifications for them. These could include risk to industrial operations, stakeholder trust and employee security. The engines that were sourced from Hyundai were reportedly sold across the state in grey markets.
What Led To the Investigation
The Investigation began when Kia discovered anomalies in its inventory records during the stock reconciliation in January 2025. Kia had reported the issue to the local authorities in March. The brand went on to identify that around 940 engines were missing as reported by Reuters.
A further probe into the matter have identified two former Kia employees whose whereabouts are recently unknown. Inspector K. Raghavan- who is handling the investigation reported that the theft was a coordinated operation that used trucks with fake registration plates, Multiple illegal transactions and Forged transport invoices. Investigators were able to recover mobile phones containing WhatsApp chats, transport records and truck images. It was in a statement to Reuters that Kia India confirmed that the discovery was made while upgrading the inventory systems. Kia is now reinforcing its process governance and monitoring systems to present further such incidents.
