Sterling Tools Targets 50 Percent Revenue from EV and Mobility Solutions by 2030

Sterling Tools Limited, based in Faridabad, is shifting its focus from traditional fasteners to advanced mobility solutions. The company supplies major automotive OEMs in India, Europe, and the USA. It currently operates four facilities that manufacture fasteners for engines, chassis, and electric vehicles (EVs).

Key Highlights

• Sterling Tools aims for 50 percent revenue from EV and mobility solutions by 2030
• Company plans ₹70 crore capex for electric powertrains and mobility solutions in current fiscal year
• Partnerships include Jiangsu Gtake for MCUs and Advanced Electric Machines for magnet-free motors
• Sterling eMobility revenue drops as Ola Electric insources controller manufacturing
• Magnet-free motor trials expected in two vehicle programmes by end of 2026

Sterling Tools aims to generate half of its revenue from autonomous, connected, and electric mobility solutions by 2030. This marks a delay from its earlier target of 2028 due to changing market conditions in India's EV sector. Jaideep Wadhwa, Director at Sterling Tools, confirmed the revised timeline.

Investment in EV and Mobility Technologies

The company has planned a capital expenditure of approximately ₹70 crore for electric powertrains and future mobility solutions in the current fiscal year. Its net block stands at ₹55 crore, with an additional ₹18 crore to be invested this year. This spending focuses solely on EV-related projects at its headquarters plant.

Sterling Tools is expanding its EV powertrain and electronics portfolio through strategic partnerships. Collaborations include Jiangsu Gtake Electric Co. Ltd. for motor control units (MCUs), Advanced Electric Machines Ltd. for magnet-free motors, and Landworld Technology Company Ltd. The partnership with Jiangsu Gtake has resulted in the production of over one million controllers to date.

Revenue Impact and New Partnerships

Sterling eMobility, the company's EV division, experienced a drop in revenue after Ola Electric began manufacturing controllers in-house. In the previous fiscal year, Sterling eMobility contributed 35 percent to overall company growth. However, revenue from this segment will be lower this year due to Ola's insourcing.

The company is also expanding into new EV components, including on-board chargers, DC-DC converters, high-voltage DC contactors, radar systems, and ADAS/ARAS solutions. Each new business vertical is expected to require annual investments of ₹15–25 crore. An additional ₹15–20 crore may be needed to establish a motor production line after customer validation.

Focus on Magnet-Free Motor Technology

Sterling Tools has partnered with UK-based Advanced Electric Machines to introduce magnet-free motor technology in India. This initiative addresses potential supply constraints of rare earth permanent magnets used in EV motors. The company expects to begin trials of magnet-free motors in at least two vehicle programs by the end of 2026. These will include applications for two-wheelers and commercial vehicles.

The market for EV powertrain components, such as motors, controllers, onboard chargers, and DC-DC converters, is projected to reach ₹20,000 crore by 2030. Sterling Tools plans to leverage its existing customer relationships to increase its market share, focusing on legacy OEMs rather than unrelated segments.