Does Kia Qualify for PLI? Centre Wants to Be Sure

Kia did not submit proof of investments within the deadline but has now approached the govt

- Manas Pimpalkhare & Rituraj Baruah

The government is examining Kia India Pvt. Ltd.'s electric vehicle (EV) investments in 2024 to decide if the South Korean carmaker's local unit is eligible for receiving production-linked incentives (PLI), Mint has learnt.

"The company had previously not updated their investments onto the PLI-Auto portal and not met deadlines, and they have reached out to the heavy industries ministry with the relevant disclosures about their investments in EV projects," said a senior government official on the condition of anonymity.

"But no decision has been taken about whether the company will be eligible for incentives," the official said.

Companies are required to update information about investments and sales on the PLI portal every quarter. But the ministry received communication from Kia India only in early January, the official said.

Mint reported on 23 December the government could exclude a dozen companies, including Kia India, from the scheme due to lack of investment proof. The caution reflects increased glare over foreign carmakers after both Kia and Volkswagen Group's India unit faced tax demands for allegedly importing cars as individual parts, instead of categorizing the shipments as 'completely knocked down,' or CKD, kits that attract a higher import tax rate. The companies contested the claims.