Kia India Rocked By $2.3 Million Engine Theft Scandal; Ex-Employees Under Scrutiny

Investigators allege that the duo collaborated with logistics coordinators and scrap dealers to transport the engines out of the plant using doctored gate passes and counterfeit invoices

The engines were reportedly trafficked and sold across state lines, including in Delhi

Source : https://www.kia.com

Authorities in Andhra Pradesh are investigating a large-scale theft involving over 1,000 car engines allegedly stolen from Kia India’s manufacturing facility over a span of three years. The engines, valued at approximately $2.3 million, were reportedly removed using falsified documentation in what investigators describe as a well-organized criminal operation, according to a Reuters report.

The case, first reported by Kia in March 2025, came to light after an internal audit flagged irregularities in engine inventory. The company had been reviewing its inventory management system when discrepancies involving Hyundai-supplied engines were discovered, prompting a formal complaint to law enforcement.

According to police documents reviewed by Reuters, two former employees, a team leader and a section head from the engine dispatch division are suspected of orchestrating the theft. Investigators allege that the duo collaborated with logistics coordinators and scrap dealers to transport the engines out of the plant using doctored gate passes and counterfeit invoices.

Repeated Illegal Transaction 

Inspector K. Raghavan, in an April 16 report, stated: "The entire operation involved repeated illegal transactions, use of multiple trucks bearing manipulated or pseudo registration numbers." He declined to comment further, citing the ongoing nature of the investigation, as per the report.

The engines were reportedly trafficked and sold across state lines, including in Delhi, raising alarms about potential inter-state criminal networks exploiting corporate infrastructure.

Internal Audit Revealed The Theft

Kia India confirmed that the internal audit led to the discovery and that the company promptly initiated an investigation and informed the authorities. “Kia India conducted an internal investigation, reported the case to police and was continuing to strengthen internal process governance and reinforce stringent monitoring systems,” the company said in a statement to Reuters.

One of the key suspects, Vinayagamoorthy Veluchamy, 37, is currently in custody and has applied for bail, maintaining his innocence in court filings. The second individual, 33-year-old Patan Saleem, remains untraceable, with his listed contact numbers inactive, claims the report.

It added that while the suspects have not yet been formally charged, the case remains active. Authorities say the scale and sophistication of the operation could lead to severe penalties, including up to 10 years in prison, if convictions follow.