Kia India will need to invest Rs 1,400 crore in FY26 to secure incentives under the Rs 25,938 crore production-linked incentive (PLI-Auto) scheme for the automobile and auto components sector.
The ministry of heavy industries is considering granting Kia India a one-year extension to make the required investment and meet its stipulated sales target. However, failure to comply will result in its exclusion from the scheme, a senior official told FE.
“The company did not meet the required investment target in FY24 and FY25. If it fails again in FY26, it will be barred from the scheme,” the official said.
Even if Kia India makes the investment, it is expected to lag behind competitors like Tata Motors and Mahindra & Mahindra, which collectively secured approximately Rs 246 crore in incentives in FY25.
A query in this regard sent to Kia India remained unanswered till the time of going to the press.
Kia India is the only major automaker that has not submitted any investment documents. While Tata Motors, Mahindra & Mahindra, and Ola Electric have already received incentives, other participants, including Ashok Leyland, Bajaj Auto, Eicher Motors, Hero MotoCorp, Piaggio, Suzuki Motor Gujarat, Pinnacle Mobility, and TVS Motors, have provided the necessary documentation.
Kia India had written to the government in January expressing its intent to remain in the PLI scheme. The company requested additional time to submit investment proof, citing procedural delays. However, sources claim its documentation remains insufficient.
The PLI scheme, introduced in September 2021, incentivises investments in advanced automotive technologies, including battery electric vehicles (BEVs) and hydrogen fuel cell vehicles (FCVs). Participating companies must invest at least Rs 800 crore by March 31, to retain eligibility. However, they can regain eligibility in subsequent years by meeting cumulative investment targets.
Kia India had previously committed to investing Rs 2,000 crore in the EV sector, covering research and development, infrastructure, and manufacturing. The company has announced plans to launch its first mass-market, ‘Made in India’ electric vehicle in the second half of 2025, followed by another in early 2026. Currently, Kia’s electric offerings, the EV6 and EV9, are imported as completely built units (CBUs).
Kia India was among the 18 automakers selected as Champion OEMs under the PLI scheme.
