Sterling Tools Rises with New EV Partnership in China

Sterling Tools Ltd. saw its stock price jump over 4% on Monday after announcing an exciting new venture into electric vehicle (EV) power electronics through a partnership with China’s Landworld Technology. This move is a big step for the auto parts maker, tapping into India’s growing push for homegrown EV technology.

Through its subsidiary, Sterling Gtake E-Mobility (SGEM), the company will start manufacturing key EV components like on-board chargers, DC/DC converters, and multi-function units that combine power distribution systems. These parts are essential for both passenger and commercial electric vehicles, helping charge batteries from external sources and powering systems like lights and entertainment displays.

The production will happen at SGEM’s EV facility in Faridabad, Haryana, supporting India’s “Make in India” and self-reliance goals by reducing the need for imported parts. “We’re moving beyond our earlier focus on motor control units and powertrains to meet the rising demand for advanced EV technology,” said Anil Aggarwal, Chairman of Sterling Tools. “As EV systems become more integrated, we want to give our customers more options for both standalone and multi-purpose units to support various vehicle functions. Our goal is to provide top-notch technical support to help boost EV adoption across India.”

Sterling Tools, traditionally known for making high-strength fasteners for cars, two-wheelers, trucks, and farm equipment, is now expanding its reach in the EV space through SGEM. The market loved the news, with the company’s stock rising 4.18% to Rs 345.45 on the BSE. Experts estimate the Indian market for these EV components could hit Rs 3,000 crore, with Sterling potentially earning Rs 450 crore in revenue by FY30.

But the first quarter of FY26 has been challenging as the company realized a profit 51.17 per cent less to Rs 8.99 crore and sales 31.81 per cent less to Rs 192.08 crore than in the previous year. The new EV venture might be a game-changer, which assisted Sterling recovering when the demand of traditional auto parts slows.

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Such collaboration suggests the increased cooperation around the world in EV technology, with Indian firms such as Sterling Tools relying on foreign expertise to guide the transition to electric vehicles. With EVs becoming trendy, Sterling stands at a good position to capture a portion of this rapidly expanding market, and this could trigger a change of fortune in its business.