NikkoAM-StraitsTrading MSCI China Electric Vehicles and Future Mobility ETF

Fund Description

Key Features

• 1

  Gain access to companies across China's Electric Vehicle and Future Mobility supply chain

  The NikkoAM-StraitsTrading MSCI China Electric Vehicles and Future Mobility (EVFM) ETF covers the scope of electric vehicles as well as future mobility, which is a broader concept covering the future of transport.

  This would include companies involved in autonomous vehicles and ride-hailing services. 

  

• 2

  China leads the US in EV sales

  Did you know that every one out of every two EVs sold globally today goes to China? 

  EV sales in China reached 3.3 million vehicles in 2021, more than doubling from the previous year. 

  With 6.6 million EVs sold globally last year, this also means that one out of every two EVs in the world goes to China. 

  This far exceeds the number of EVs sold in the next largest market – Europe, which saw 2.3 million EVs sold in 2021.

  And the US? It’s trailing behind with just 630,000 EVs sold.

  

• 3

  China leads the US in EV adoption rate

  China’s lead in the EV market doesn’t come about simply because of its sheer market size. 

  What’s amazing is that in terms of how likely car owners are to pick an EV over a traditional internal combustion engine (ICE) vehicle, China also remains far ahead of the US. 

  According to the International Energy Agency (IEA), electric cars represent 16% of cars sales in China in 2021, jumping from just 5% in 2020

  This means that for every 100 cars sold in China last year, 16 were EVs. 

  Globally, 9% of all cars sold were electric. In the US, it’s just at 4.5%.

  Only Europe surpassed China’s level of EV adoption, with 17% of cars sold being electric last year. 

  

• 4

  China’s dominance is not likely to go away

  The Chinese EV market is not only the largest in the world currently. It is also projected to be the largest in the next 5 to 10 years. 

  The IEA projects EV sales in China to reach 7.5 million units in 2025, more than doubling last year’s sales. 

  With global sales expected to reach 15.7 million units then, China is likely to retain its dominant position in global EV sales.

  Europe is expected to follow closely behind with EV sales potentially reaching 5.0 million units in 2025, supported by a continually high adoption rate. 

  Yes, EV sales in the US are expected to pick up as more electric trucks become commercially available. 

  But the 1.5 million EVs expected to be sold in 2025 remains a fraction of what is sold in China. 

  

  But the 1.5 million EVs expected to be sold in 2025 remains a fraction of what is sold in China.