Sales Robust in World’s Largest EV Market, KARS Invests

The China Passenger Car Association reported new energy vehicle retail sales growth of 52% year-over-year in November, according to KraneShares. The sales of 1.27 million last month was a gain of 7% over October retail sales, bringing YTD sales to 9.61 million in China. All told, global EV sales crossed 14.1 million between January and October. In October, China accounted for 76% of global EV sales, reported the Guardian.

BYD, the world’s largest EV manufacturer, expects to grow its revenue to $104 billion this year, a 23% gain. For comparison, GM expects revenue growth of 5% to $180 billion. November sales gains for BYD prompted a 2.4% gain in the company’s stock earlier this week, KraneShares reported Monday. NIO rose 2.92% on November sales growth, while Xpeng rose 5.06%. Robust demand and supportive policy measures could create tailwinds for the world’s largest EV market looking ahead.

KARS provides investors with exposure to the breadth of the electric vehicle industry. The fund takes not just a global approach to EV exposure, but also invests along the entirety of the value chain.

The ETF measures the performance of the Bloomberg Electric Vehicles Index, which tracks the industry holistically. This includes exposure to electric vehicle manufacturers, electric vehicle components, and batteries. It also includes hydrogen fuel cells and the raw materials used in the synthesis of producing parts for EVs.

The fund invests in major EV car manufacturers such as BYD, Li Auto, and Tesla. It also goes a step beyond and invests in the companies that contribute to the EV value chain. These include Samsung, Panasonic, and Albemarle, a major lithium manufacturer. The fund’s sector breakdown included consumer discretionary at 41.61% weight, materials at 29.27%, and industrials at 23.82% as of the end of October.

KARS carries an expense ratio of 0.72%.

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