Sterling Tools has announced a significant partnership with Landworld Technology Co. Ltd. of China, marking a strategic move into the electric vehicle (EV) component manufacturing sector. This collaboration aims to establish local production of on-board chargers and DC/DC converters in India, bolstering the country's EV charging infrastructure.

Partnership Details

Sterling Tools, through its subsidiary Sterling Gtake E-Mobility Limited (SGEM), has signed Technology License and Supply agreements with Landworld Technology. The partnership focuses on manufacturing key EV charging infrastructure components domestically, including:

• On-board Chargers
• DC/DC Converters
• Multi-Function Units (incorporating On-Board Chargers, DC/DC converters, and Power Distribution Units)

These components are crucial for the electrification of both passenger and commercial vehicles.

Manufacturing and Revenue Projections

The production of these EV components will take place at Sterling's EV campus in Faridabad. The partnership has set an ambitious target, projecting revenue of approximately ₹450.00 crore by the fiscal year 2030. This figure is particularly significant considering the overall market for these components is expected to reach ₹3,000.00 crore.

Strategic Importance

Anil Aggarwal, Chairman of Sterling Tools Limited, emphasized the strategic importance of this partnership, stating, "This partnership creates greater depth in the EV ecosystem in India. We are expanding beyond our initial Motor Control Unit & Power Train platforms to meet our customer's growing demand for advanced technology in the EV sector."

The collaboration aligns with several key objectives:

1. Import Substitution: By producing these components domestically, the partnership supports the Atmanirbhar Bharat (Self-Reliant India) vision.
2. Make in India Initiative: The local manufacturing effort contributes to the government's push for domestic production.
3. Technology Access: Indian companies and suppliers will have local access to advanced EV technology.
4. Ecosystem Development: The partnership aims to build a self-reliant ecosystem for the auto industry in India.

Landworld Technology's Perspective

Lin Chen, Vice General Manager of Landworld Technology Co., Ltd., expressed optimism about the Indian EV market's potential. Chen stated, "Through our partnership with Sterling Gtake, we are bringing our proven expertise in On-Board Chargers and DC/DC converters to Indian customers across several EV vehicle categories."

Broader Impact on Sterling's EV Strategy

This partnership is part of Sterling Tools' broader strategy to develop competence in EV Power Electronics and build a comprehensive portfolio serving the Indian Auto Industry. It follows previous collaborations, including agreements with Jiangsu Gtake Electric Co. Ltd. (China) and Advanced Electric Machines (UK).

The move into on-board chargers and DC/DC converters complements Sterling's existing EV component offerings, which include Motor Control Units and various powertrain solutions.

Market Outlook

As the EV market in India continues to grow, this partnership positions Sterling Tools to capitalize on the increasing demand for locally manufactured, high-quality EV components. The company's expansion into this sector reflects the broader trend of traditional automotive suppliers adapting to the shift towards electric mobility.

With the Indian government pushing for greater EV adoption and the automotive industry undergoing a significant transformation, Sterling Tools' strategic partnership with Landworld Technology appears well-timed to meet the evolving needs of the market while contributing to the country's self-reliance goals in the automotive sector.

Sterling Tools Limited (STL), a leading automotive component manufacturer, is ramping up its focus on the electric vehicle (EV) sector through strategic product diversification and new OEM partnerships. The company's latest initiatives underscore its commitment to long-term expansion in the rapidly evolving EV market.

Expanding EV Product Portfolio

Sterling Gtake E-Mobility (SGEM), a subsidiary of STL, is at the forefront of the company's EV push. SGEM has secured its first nomination for DC/DC converters from a prominent e-CV (electric commercial vehicle) OEM. This marks a significant milestone in SGEM's product diversification strategy, which includes the development of:

• Integrated Motors & MCUs
• Magnet-free motors
• Onboard chargers
• DC/DC converters

Advancing into HVDC Technology

Sterling Tech-Mobility Limited (STML), another wholly-owned subsidiary of STL, is set to commence commercial production of High Voltage Direct Current (HVDC) contactors and relays. Production is expected to begin in the second half of FY26, positioning STL as an early entrant in the HVDC space.

Strategic Partnerships and Investments

STL has formed strategic alliances with global technology leaders to enhance its technological edge and market credibility in the EV ecosystem. Notable partnerships include:

1. Collaboration with Jiangsu Gtake Electric Co. Ltd, China
2. Partnership with Advanced Electric Machines Ltd, UK, to introduce Rare Earth Magnet-Free Traction Motors in India

These partnerships are crucial for technology transfer, customer trials, and localization efforts.

Financial Commitment to EV Growth

The company's board has approved an investment of up to Rs. 20.00 crore in STML. This investment, to be made in one or more tranches, aims to support STML's capital expenditure and working capital requirements as it expands into new automotive product lines.

Diversifying Customer Base

While focusing on EV growth, STL continues to strengthen its traditional fasteners business. The company has recently added Hyundai Motors to its customer base, indicating its ability to attract major OEMs across various automotive segments.

Q1 FY26 Performance

Despite a 5.10% year-on-year decline in the domestic automobile industry during Q1 FY26, STL's standalone fasteners business maintained stability. The company reported:

Atul Aggarwal, Managing Director of Sterling Tools Ltd., commented on the company's performance and strategy: "We are aligning our efforts across the STL Group to expand in the Autonomous, Connected and Electric (ACE) mobility space. This comprehensive approach positions us to stay ahead of industry trends and drive innovation."

As Sterling Tools Limited continues to diversify its product portfolio and strengthen its presence in the EV component market, the company appears well-positioned to capitalize on the growing demand for electric vehicle technologies in India and beyond.