Kia India Faces PLI Deadline, Needs To Invest Rs 1,400 Crore In FY26 To Retain Benefits: Report

Even if the firm meets its investment obligation, it is likely to lag behind industry leaders Tata Motors and Mahindra & Mahindra, who collectively secured around Rs 246 crore in incentives in FY25.

The company also has plans to launch its first mass-market electric vehicle, made in India, in the latter half of 2025, followed by another model in early 2026.

Source : Kia India

Kia India will need to invest Rs 1,400 crore in the upcoming 2025-26 fiscal year (FY26) to qualify for benefits under the Rs 25,938 crore production-linked incentive (PLI-Auto) scheme. The scheme is aimed at boosting domestic manufacturing in the automobile and auto components sector.

While the Ministry of Heavy Industries is considering a one-year extension for the company to meet its investment and sales targets, citing a senior official, The Financial Express reported that failure to fulfill comply with the norms will result in the automaker's disqualification from the scheme.

“The company did not meet the required investment target in FY24 and FY25. If it fails again in FY26, it will be barred from the scheme,” the official stated.

Even if the automaker meets its investment obligation, it is likely to lag behind industry leaders Tata Motors and Mahindra & Mahindra, who collectively secured around Rs 246 crore in incentives in FY25.

Lack of Documentation Raises Concerns

Kia India is currently the only major automaker yet to submit investment-related documents, unlike competitors such as Tata Motors, Mahindra & Mahindra, and Ola Electric, which have already qualified for incentives. Other participants, including Ashok Leyland, Bajaj Auto, Eicher Motors, Hero MotoCorp, Piaggio, Suzuki Motor Gujarat, Pinnacle Mobility, and TVS Motors, have submitted the required documentation.

In January, Kia India wrote to the government, reaffirming its commitment to the PLI scheme and requesting more time to provide proof of investment, citing procedural delays. However, the report claimed that the company’s documentation remains incomplete.

Introduced in September 2021, the PLI scheme promotes investment in advanced automotive technologies, such as battery electric vehicles (BEVs) and hydrogen fuel cell vehicles (FCVs). To maintain eligibility, automakers must invest at least Rs 800 crore by March 31, but they can regain eligibility in subsequent years by fulfilling cumulative investment obligations.

Kia India previously committed Rs 2,000 crore towards electric vehicle (EV) development, covering research and development, infrastructure, and manufacturing. The company also has plans to launch its first mass-market electric vehicle, made in India, in the latter half of 2025, followed by another model in early 2026. Currently, Kia's electric lineup, including the EV6 and EV9, consists of completely built units (CBUs) imported into the country.

Kia India was among 18 automakers selected as Champion OEMs under the PLI scheme, but its continued participation now hinges on meeting investment and sales benchmarks in the coming financial year.