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IEA Predicts 20M Electric Car Sales in 2025: ETFs Poised to Gain
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According to the International Energy Agency’s (“IEA”) flagship report, the World Energy Outlook, published on Nov. 12, 2025, global electric car sales are expected to reach more than 20 million in 2025, accounting for over one-in-four cars sold worldwide. This reflects an increase of 17.6% from the previous year’s electric car sales.
Against this backdrop, investors interested in making an entry in the electric vehicle (EV) market space may consider keeping a watch on prominent EV-focused exchange-traded funds (ETFs) like Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report) , KraneShares Electric Vehicles & Future Mobility ETF (KARS - Free Report) , State Street SPDR S&P Kensho Smart Mobility ETF (HAIL - Free Report) and iShares Self-Driving EV and Tech ETF (IDRV - Free Report) .
Why ETFs and Not Individual Stocks?
As demand for passenger and goods transport continues to rise rapidly worldwide, especially in emerging markets and developing economies, EVs play a critical role in the decarbonization of the transport sector. Investors looking to benefit from the strong EV sales growth outlook may choose to invest directly in electric car stocks like Tesla (TSLA - Free Report) , or in companies such as BYD Company (BYDDF - Free Report) , which is known for manufacturing EV batteries.
However, it is worth mentioning that both Tesla and BYD Company are dealing with crucial challenges at the moment, albeit of different kinds. Tesla has been facing increasing competition from Chinese automakers, who offer a wider range of more affordable EV models. This has put significant pressure on the American EV maker’s sales performance in recent quarters.
Notably, after suffering its first-ever annual delivery decline in 2024, Tesla started 2025 on a rough note, with sales falling by double digits in the first two quarters. While the third quarter offered Tesla a temporary breather as buyers rushed to take advantage of the expiring $7,500 federal EV tax credit, fourth-quarter deliveries are once again expected to decline amid the withdrawal of incentives and intense competition from Chinese EV makers.
Meanwhile, the stock’s high valuation is tied to a great extent to the future success of its innovative technologies like autonomous robotaxis and humanoid robots, rather than the performance of its core EV business.
On the other hand, BYD Company's aggressive pricing strategy and a bruising price war in the Chinese market led it to lose profit margins. Moreover, after a period of explosive growth, its sales momentum has stalled in its home market of China due to increased scrutiny of price discounting and strong competition from other domestic rivals like Xiaomi and Geely.
Considering the aforementioned discussion, it is safe to conclude that investment in an ETF might be a smarter move for an investor eager to profit from the EV market’s tailwind without being exposed to the company-specific financial challenges and competitive pressures that can severely impact individual stocks like Tesla or BYD Company’s performance.
ETFs to Watch
Considering the aforementioned discussion, here we present 4 EV-focused ETFs that should gain from the soaring EV car sales expectation:
Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report)
This fund, with net assets worth $330.38 million, provides exposure to 76 companies involved in the development of autonomous vehicle technology, EVs and EV components and materials. This includes companies involved in the development of autonomous vehicle software and hardware, as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt. Its top 10 holdings include EV manufacturers- Tesla (3.22%) and Toyota Motors (2.44%).
DRIV has surged 28.5% year to date. The fund charges 68 basis points (bps) as fees.
This fund, with net assets worth $81.85 million, provides exposure to companies engaged in the electric vehicle production, autonomous driving, shared mobility, lithium and/or copper production, lithium-ion/lead acid batteries, hydrogen fuel cell manufacturing, and electric infrastructure businesses. Its top 10 holdings include EV manufacturers as well as EV battery providers- Tesla (4.17%), Xpeng (4.05%), Panasonic (3.77%) and BYDDF (3.10%).
KARS has soared 49% year to date. The fund charges 72 bps as fees.
State Street SPDR S&P Kensho Smart Mobility ETF (HAIL - Free Report)
This fund, with assets under management (AUM) worth $21.16 million, provides exposure to 79 companies whose products and services are driving innovation behind smart transportation. Its top three holdings include Ballard Power Systems (2.60%), provider of hydrogen fuel cell technology used in EVs, Lumentum Holdings (2.45%), provider of optical and laser technology used in EV battery manufacturing, and Garret Motion (2.28%), provider of zero-emission technologies like electric turbochargers used in hybrid electric cars.
HAIL has gained 19% year to date. The fund charges 45 bps as fees.
This fund, with net assets worth $168.92 million, provides exposure to 47 companies at the forefront of self-driving and EV innovation. Its top 10 holdings include Tesla (4.24%) and Xpeng (3.96%).
IDRV has soared 32.6% year to date. The fund charges 47 bps as fees.
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IEA Predicts 20M Electric Car Sales in 2025: ETFs Poised to Gain
According to the International Energy Agency’s (“IEA”) flagship report, the World Energy Outlook, published on Nov. 12, 2025, global electric car sales are expected to reach more than 20 million in 2025, accounting for over one-in-four cars sold worldwide. This reflects an increase of 17.6% from the previous year’s electric car sales.
Against this backdrop, investors interested in making an entry in the electric vehicle (EV) market space may consider keeping a watch on prominent EV-focused exchange-traded funds (ETFs) like Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report) , KraneShares Electric Vehicles & Future Mobility ETF (KARS - Free Report) , State Street SPDR S&P Kensho Smart Mobility ETF (HAIL - Free Report) and iShares Self-Driving EV and Tech ETF (IDRV - Free Report) .
Why ETFs and Not Individual Stocks?
As demand for passenger and goods transport continues to rise rapidly worldwide, especially in emerging markets and developing economies, EVs play a critical role in the decarbonization of the transport sector. Investors looking to benefit from the strong EV sales growth outlook may choose to invest directly in electric car stocks like Tesla (TSLA - Free Report) , or in companies such as BYD Company (BYDDF - Free Report) , which is known for manufacturing EV batteries.
However, it is worth mentioning that both Tesla and BYD Company are dealing with crucial challenges at the moment, albeit of different kinds. Tesla has been facing increasing competition from Chinese automakers, who offer a wider range of more affordable EV models. This has put significant pressure on the American EV maker’s sales performance in recent quarters.
Notably, after suffering its first-ever annual delivery decline in 2024, Tesla started 2025 on a rough note, with sales falling by double digits in the first two quarters. While the third quarter offered Tesla a temporary breather as buyers rushed to take advantage of the expiring $7,500 federal EV tax credit, fourth-quarter deliveries are once again expected to decline amid the withdrawal of incentives and intense competition from Chinese EV makers.
Meanwhile, the stock’s high valuation is tied to a great extent to the future success of its innovative technologies like autonomous robotaxis and humanoid robots, rather than the performance of its core EV business.
On the other hand, BYD Company's aggressive pricing strategy and a bruising price war in the Chinese market led it to lose profit margins. Moreover, after a period of explosive growth, its sales momentum has stalled in its home market of China due to increased scrutiny of price discounting and strong competition from other domestic rivals like Xiaomi and Geely.
Considering the aforementioned discussion, it is safe to conclude that investment in an ETF might be a smarter move for an investor eager to profit from the EV market’s tailwind without being exposed to the company-specific financial challenges and competitive pressures that can severely impact individual stocks like Tesla or BYD Company’s performance.
ETFs to Watch
Considering the aforementioned discussion, here we present 4 EV-focused ETFs that should gain from the soaring EV car sales expectation:
Global X Autonomous & Electric Vehicles ETF (DRIV - Free Report)
This fund, with net assets worth $330.38 million, provides exposure to 76 companies involved in the development of autonomous vehicle technology, EVs and EV components and materials. This includes companies involved in the development of autonomous vehicle software and hardware, as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt. Its top 10 holdings include EV manufacturers- Tesla (3.22%) and Toyota Motors (2.44%).
DRIV has surged 28.5% year to date. The fund charges 68 basis points (bps) as fees.
KraneShares Electric Vehicles & Future Mobility ETF (KARS - Free Report)
This fund, with net assets worth $81.85 million, provides exposure to companies engaged in the electric vehicle production, autonomous driving, shared mobility, lithium and/or copper production, lithium-ion/lead acid batteries, hydrogen fuel cell manufacturing, and electric infrastructure businesses. Its top 10 holdings include EV manufacturers as well as EV battery providers- Tesla (4.17%), Xpeng (4.05%), Panasonic (3.77%) and BYDDF (3.10%).
KARS has soared 49% year to date. The fund charges 72 bps as fees.
State Street SPDR S&P Kensho Smart Mobility ETF (HAIL - Free Report)
This fund, with assets under management (AUM) worth $21.16 million, provides exposure to 79 companies whose products and services are driving innovation behind smart transportation. Its top three holdings include Ballard Power Systems (2.60%), provider of hydrogen fuel cell technology used in EVs, Lumentum Holdings (2.45%), provider of optical and laser technology used in EV battery manufacturing, and Garret Motion (2.28%), provider of zero-emission technologies like electric turbochargers used in hybrid electric cars.
HAIL has gained 19% year to date. The fund charges 45 bps as fees.
iShares Self-Driving EV and Tech ETF (IDRV - Free Report)
This fund, with net assets worth $168.92 million, provides exposure to 47 companies at the forefront of self-driving and EV innovation. Its top 10 holdings include Tesla (4.24%) and Xpeng (3.96%).
IDRV has soared 32.6% year to date. The fund charges 47 bps as fees.