Sterling Tools partners with Yongin Electronics to boost India’s EV production
In a significant development for India’s burgeoning electric vehicle (EV) market, Sterling Tools Limited (BSE: 530759) (NSE: STERTOOLS), India’s second largest automotive fastener manufacturer and through its subsidiary the leading manufacturer of Motor Control Units (MCUs), has entered into a Memorandum of Understanding (MoU) with Yongin Electronics Co., Ltd, a major component supplier to Hyundai Kia Motor Group. This strategic partnership is projected to generate Rs. 250 crore in business over the next five years and marks a pivotal step in enhancing the production of EV and electronic components within India.
To support this initiative, Sterling Tools Limited will establish a new greenfield manufacturing facility in India, aimed at accelerating production capacities. This move is aligned with the Indian government’s ‘Atma Nirbhar Bharat’ vision, which encourages self-sufficiency and local manufacturing.
Yongin Electronics Co., Ltd, renowned for its technological expertise in the EV sector, will collaborate with Sterling Tools to enhance the latter’s EV component portfolio. This includes increasing local value addition and integrating backward into passive components. The collaboration spans the entire portfolio of magnetic components essential for various applications in India’s EV and electronics manufacturing sectors.
Anish Agarwal, Director at Sterling Tools Limited, commented on the partnership, stating, “This MoU demonstrates Sterling’s commitment to developing the EV and Electronics ecosystem and contributing to ‘Make In India’. We are one step closer to our goal of strengthening our presence and offerings as a provider of green energy solutions in the automotive industry.”
K. H. Kim, CEO of Yongin Electronics Co., Ltd, also expressed optimism about the partnership, remarking, “We recognize the significant potential within the Indian EV market. It brings us great pleasure to announce our partnership with Sterling through the signing of an MOU. We are prepared to embark on a journey of mutual growth and collaboration within the Indian EV industry, contributing positively to its advancement.”
The MoU not only signifies a major leap in Sterling Tools Limited’s strategic direction but also positions it to lead the transition towards a more sustainable and technologically advanced future in the automotive industry. With Yongin’s vast experience in developing electronic components such as Transformers, AC/DC Reactors, Coils & Chokes, and more, the collaboration is set to make a significant impact on the industry.
This partnership between Sterling Tools Limited and Yongin Electronics is a clear indicator of the evolving automotive landscape in India, showcasing a robust move towards enhancing the EV infrastructure and technology base in the country. As the industry continues to adapt to global trends and environmental considerations, such collaborations are essential for ensuring the long-term growth and sustainability of the automotive sector in India.