Two former Kia India employees face criminal investigation for allegedly orchestrating the theft of 1,008 car engines worth $2.3 million from the automaker’s Andhra Pradesh factory over three years, Reuters reports.
Police documents reveal the sophisticated operation involved forged invoices, manipulated gate passes, and a network of scrap dealers who distributed the stolen engines as far as New Delhi. Inspector K. Raghavan’s April 16 investigation report described “repeated illegal transactions” using trucks with falsified registration plates, noting the scheme’s “widespread impact on industrial operations, stakeholder trust and employment security.”
Kia India detected discrepancies during enhanced inventory checks in early 2025, later reporting unauthorised vehicle movements in CCTV footage. While the company’s March police complaint cited 940 missing Hyundai-sourced engines (Kia’s sister brand), the tally later rose to 1,008.
In a statement, Kia confirmed it had “conducted an internal investigation, reported the case to police,” and was strengthening monitoring systems.
The accused include Vinayagamoorthy Veluchamy, 37, Kia’s former engine dispatch section head, currently detained while seeking bail from Andhra Pradesh’s High Court. Documents show Veluchamy denies involvement, though he left the company in 2023. Patan Saleem, 33, a team leader from 2020–2025, remains at large with his registered phone numbers disconnected.
Police recovered nine mobile phones containing critical evidence: WhatsApp conversations detailing the scheme, transport invoices, and truck photos. Their investigation suggests proceeds funded personal expenses, debt repayments, property purchases, or business reinvestments.
While theft charges carrying 10+ year sentences may follow, no formal indictments have been filed yet.
Kia’s experience underscores vulnerabilities in inventory management—especially for high-value components—amid growing auto production. The automaker, which entered India in 2019, now faces scrutiny over internal controls as police trace the interstate crime network.
