A large-scale investigation is underway, focusing on former Kia India employees and scrap dealers, following the discovery of over 1,000 missing engines from the company's plant in Andhra Pradesh. The theft, which is estimated to be worth crores of rupees, has raised serious concerns about security lapses and potential organized crime.
The issue came to light after Kia India conducted its year-end audit in March 2025. The audit revealed a discrepancy of approximately 900 to 1,008 missing engines from its production facility located in Sri Sathya Sai district. This prompted the company to file a complaint with local authorities, leading to the launch of a comprehensive investigation.
Initial investigations suggest that the theft occurred over a period of five years, with engines being stolen in a phased and planned manner. Police suspect the involvement of both former and current employees of Kia Motors, indicating potential internal collusion. According to sources, the value of the stolen engines is estimated to be around ₹50 crores.
In a significant breakthrough, police have arrested nine individuals connected to the theft. The accused have been sent to 14 days of judicial custody by the Penukonda court. Most of the suspects hail from Tamil Nadu, and two are foreign nationals who had worked at Kia Motors. It is believed that over 30 individuals may be involved in the racket, with concerns that some may have absconded.
The stolen engines were reportedly smuggled and sold across India, including cities like Meerut, Delhi, Chennai, Hyderabad, Bengaluru, and Madurai. This widespread distribution network suggests a well-organized operation with connections in various states.
Authorities are particularly alarmed by reports that the stolen engines were reassembled with locally available spare parts to create operational vehicles. An unnamed senior police officer stated that these vehicles could potentially be used in criminal activities or fall into the hands of anti-social elements, posing a serious threat to national security.
The investigation is now focused on identifying the masterminds behind the theft, tracing the vehicles built with the stolen engines, and uncovering details about their users. Police are also probing whether audit protocols were overlooked or records were tampered with to facilitate the theft.
Adding to the complexity, police have seized four trucks from Tamil Nadu, suspected of being used to transport the stolen engines from Kia India's Penukonda facility. The involvement of former employees has raised concerns about security lapses at the plant. Authorities are continuing to probe the operation's full extent, including any potential buyers or additional accomplices.
The case has been personally overseen by the Director General of Police, highlighting the seriousness with which authorities are treating the matter. A Special Investigation Team (SIT) has been formed, and a 20-member team has been dispatched to neighboring states to locate and apprehend other suspects. Their passports and visas have reportedly been seized to prevent any attempt to flee the country.
Kia's facility in the Sri Sathya Sai district includes around 54 plants, with 26 serving as ancillary units. The main plant has a production capacity of 58 cars per hour. The industrial hub employs thousands and handles transactions worth thousands of crores. The disappearance of the engines has triggered major concern, and the company is treating the incident with utmost seriousness to prevent any recurrence. The management has requested a thorough investigation to uncover how the engines went missing, identify those behind the theft, and trace the stolen parts. Police are probing whether the engines were hidden, sold as scrap, or resold as spare parts.