[Alpha Biz= Paul Lee] Kia’s impressive performance in the Indian market, driven largely by strong sales of its SUV lineup, has been marred by the recent uncovering of a major internal theft scandal.
The crime occurred at Kia’s Penukonda plant in Andhra Pradesh, where hundreds of vehicle engines were systematically stolen over several years.
According to the Society of Indian Automobile Manufacturers (SIAM) on Tuesday, Kia sold a total of 75,576 units in India during Q1 of this year, marking its highest-ever quarterly performance since entering the Indian market. This represents a 15.6% increase year-over-year, with SUVs accounting for 80% of total sales.
Key models that contributed to the strong performance include:
Sonet: 22,497 units
Seltos: 19,441 units
Carens: 16,352 units
The newly launched compact SUV Syros: 15,986 units (launched in February)
However, an internal audit recently revealed that approximately 900 engines were stolen from the Penukonda plant over the past five years, causing shock and concern.
Local police suspect that current and former employees colluded by manipulating records to smuggle engines out of the facility. Authorities are considering the possibility of an organized internal conspiracy and have launched a full investigation.
Kia’s Indian subsidiary officially filed a complaint last month. Currently, three special investigation teams are collecting evidence across the country.
Kia stated that the incident has not impacted production volumes, but the revelation has cast a shadow over the company’s global brand image and internal control systems.
The fact that such a large-scale theft could go undetected for years at a facility that produces over 300,000 vehicles annually raises serious questions about Kia’s management oversight in India.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
