Sterling Tools Limited shares surged nearly 6 per cent on Monday after the Faridabad-based automotive components maker disclosed a Technology Collaboration Agreement and Supply Agreement with Nanjing Haohang Technology Co., Ltd. of China to develop Advanced Rider Assistance Systems (ARAS) for India’s two-wheeler market.
The stock climbed to ₹260 on the NSE by 2.32 PM, up ₹14.66 or 5.98 per cent from its previous close of ₹245.34, touching an intraday high of ₹268.99. Total traded volume stood at approximately 1.03 lakh shares, with buy orders accounting for 62 per cent of activity. The company’s market capitalisation stood at roughly ₹945 crore.
Under the agreement, Sterling Tools will handle local engineering, system adaptation, manufacturing and sales of ARAS technology in India. Nanjing Haohang, a joint venture between Haobo Electronic Technology and Nanjing Chuhang Technology, brings an existing global technology platform for two-wheelers including motorcycles and electric two-wheelers.
ARAS functions similarly to the Advanced Driver Assistance Systems found in passenger cars, using sensors, software and control systems to warn riders of potential hazards. The two companies said they have already tested features including Front Collision Warning, Rear Collision Warning, Blind Spot Detection, Lane Change Warning and Wrong-Side Alert on Indian roads.
Anish Agarwal, Director at Sterling Tools, cited two-wheeler accidents as a significant contributor to road fatalities in India as the rationale for the tie-up.
The announcement adds to Sterling Tools’ broader pivot toward next-generation automotive technology. The company already operates in EV power electronics, high-voltage DC contactors and rare-earth-magnet-free motor solutions through its subsidiaries. Despite today’s gain, the stock remains down nearly 20 per cent over the past year and about 37 per cent over three years, against a backdrop of the Nifty 50 returning roughly flat and 34 per cent respectively over the same periods.