Kia India Needs To Invest Rs 1,400 Crore With One Year Extension
In order to receive incentives under the Rs 25,938 crore production-linked incentive (PLI-Auto) scheme for the automotive and auto component industries, Kia India will need to invest Rs 1,400 crore in FY26.
Kia India may be given a one-year extension by the ministry of heavy industries to reach its sales goals and make the necessary expenditure. But if it doesn’t comply, it will be kicked out of the program, a top official told FE. “In FY24 and FY25, the company failed to fulfill the necessary investment target. It will be excluded from the program if it fails once again in FY26, the official stated.
Even if Kia India invests, it will likely fall short of rivals like Mahindra & Mahindra and Tata Motors, who together received over Rs 246 crore in incentives in FY25.
The only significant automaker without any investment documents submitted is Kia India. Although incentives have already been given to Tata Motors, Mahindra & Mahindra, and Ola Electric, additional participants have submitted the required paperwork, including Ashok Leyland, Bajaj Auto, Eicher Motors, Hero MotoCorp, Piaggio, Suzuki Motor Gujarat, Pinnacle Mobility, and TVS Motors.
In January, Kia India sent a letter to the government stating that company intended to stay in the PLI program. Citing procedural difficulties, the corporation asked for more time to produce investment proof. Sources assert that its documentation is still lacking, nevertheless.
Launched in September 2021, the PLI program encourages investments in cutting-edge automotive technologies, such as hydrogen fuel cell cars (FCVs) and battery electric vehicles (BEVs). To continue to be eligible, participating enterprises must invest a minimum of Rs 800 crore by March 31. They can, however, become eligible again in later years if they reach cumulative investment goals.
In the past, Kia India had pledged to invest Rs 2,000 crore in the EV industry, which would cover production, infrastructure, and research & development. In the second half of 2025, the business expects to introduce its first mass-market, “Made in India” electric vehicle; a second one would follow in early 2026. The EV6 and EV9, Kia’s electric vehicles, are currently imported as fully constructed units (CBUs).
