Over 1,000 Kia Engines Stolen in Factory Scam, Ex-Employees Under Investigation

NEW DELHI – In one of the most significant internal theft cases in India’s automotive sector, two former Kia India employees are under investigation for allegedly orchestrating the theft of over 1,000 car engines from the company’s factory over a period of three years. The engines, estimated to be worth $2.3 million, were reportedly stolen in collusion with scrap dealers and sold across state lines, including as far as New Delhi.

According to police investigation documents reviewed by Reuters, the former employees—identified as a team leaderand a head of section in the engine dispatch division—manipulated internal paperwork, forged gate passes, and used fake transport documents to smuggle out 1,008 engines from the Andhra Pradesh-based plant. The case, while still in its early stages, has raised red flags about inter-state crime networks and the integrity of industrial security systems in the country.

Though the financial value of the theft may appear modest in comparison to larger corporate frauds, investigators have emphasized its broader impact on stakeholder trust, employee security, and operational integrity.

Police inspector K. Raghavan, in an April 16 report, described the operation as involving “repeated illegal transactions” and “multiple trucks with manipulated or pseudo registration numbers.” Raghavan declined to comment further, citing the confidentiality of the ongoing investigation.

Kia India became aware of the issue in January 2025, when a stock reconciliation exercise revealed significant engine shortages. This came shortly after internal surveillance detected unauthorized vehicle movement within the factory premises. By March, the company officially reported 940 missing engines, a number that has since increased to 1,008.

In a statement to Reuters, Kia India confirmed the discrepancy was discovered as part of enhanced inventory management protocols introduced last year. The automaker said it had conducted its own internal probe and was working closely with authorities while implementing stricter governance and monitoring systems.

One of the main accused, Vinayagamoorthy Veluchamy, 37, who served as the head of the engine dispatch section and left Kia in 2023, is currently in custody and seeking bail from the state High Court. He has denied involvement, according to court filings.

The second suspect, Patan Saleem, 33, who worked as a team leader until early 2025, is currently untraceable. Police records list two mobile numbers for him—both inactive.

So far, neither individual has been formally charged, but both are named as accused in the ongoing criminal investigation. Given the alleged pre-planning, internal manipulation, and falsification of records, they could face up to 10 years in prison or more if convicted under applicable Indian laws.

Authorities have seized nine mobile phones containing WhatsApp messages, photos of trucks, and transport documents that link the accused to the crime. Investigators noted that proceeds from the stolen engines were used for personal expenses, property purchases, debt repayment, and business investments.

Such an elaborate and sustained case of internal theft remains rare in India’s corporate landscape, especially at this scale. The incident highlights the critical importance of internal control systems and the risks companies face when those systems are circumvented.