Electric Vehicle ETF: KARS UCITS
by Kraneshares
Driving The Future: Opportunities From The Electric Vehicle Ecosystem
KARS
31/Dec/2025
Introduction to KraneShares
About KraneShares
Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. The firm is focused on providing investors with strategies to capture China's importance as an essential element of a well-designed investment portfolio. KraneShares ETFs represent innovative, first to market strategies that have been developed based on the firm and its partners' deep knowledge of investing. These strategies allow investors to stay current on global market trends and provide meaningful diversification. Krane Funds Advisors, LLC, is a signatory of the United Nations-supported Principles for Responsible Investment (UN PRI).
In 2018, KraneShares established operations in the United Kingdom (UK) and Europe to better deliver its renowned China-focused ETFs to investors in the region. In addition to launching UK/Europe-specific versions of its most popular US-listed funds, KraneShares also develops strategies tailored to meet the specific needs of its UK/European clients.
KraneShares UCITS Product Suite
Global Thematic
KOID - KraneShares Global Humanoid & Embodied Intelligence Index UCITS ETF
- Listings: LSE, MIL, XETRA
- Marketing Passports: UK, Finland, France, Germany, Ireland, Italy, Netherlands, Sweden
- Trading Currency on LSE: USD $, Sterling £
- Trading Currency on MIL: Euro €
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KWEB - KraneShares CSI China Internet UCITS ETF
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- Trading Currency on MIL & XETRA: Euro €
KSTR - KraneShares ICBCUBS SSE STAR Market 50 Index UCITS ETF
- Listing: LSE, MIL, XETRA
- Marketing Passports: UK, Finland, France, Germany, Ireland, Italy, Netherlands, Sweden, Switzerland
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Global Carbon
KRBN - KraneShares Global Carbon Strategy ETC Securities
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- Marketing Passports: UK, Denmark*, Finland*, France*, Germany*, Ireland*, Italy*, Luxembourg*, Netherlands*, Portugal*, Spain*, Sweden*, Switzerland#
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CHIN - KraneShares ICBCUBS S&P China 500 Index UCITS
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- Trading Currency on MIL & XETRA: Euro €
Sustainable Investment — SFDR Classification: Article 8
KARS - KraneShares Electric Vehicles & Future Mobility Screened UCITS ETF
- Listings: LSE, MIL, XETRA
- Marketing Passports: UK, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Sweden, Switzerland
- Trading Currency on LSE: USD $, GBP £
- Trading Currency on MIL & XETRA: Euro €
KraneShares Electric Vehicles & Future Mobility Screened UCITS ETF
KARS
Investment Strategy:
KARS seeks to measure the performance of Bloomberg Electric Vehicles Index. The fund is designed to track the performance of companies engaged in the production of electric vehicles and/or their components or engaged in other initiatives that may change the future of mobility. The Index includes issuers engaged in the electric vehicle production, autonomous driving, lithium and/or copper production, lithium-ion/lead acid battery production, hydrogen fuel cell manufacturing and/or electric infrastructure businesses.
KARS Features:
- Access to global companies that operate in all areas of new transportation methods, passenger and freight, including electric vehicles, autonomous vehicles, and shared mobility.
- Exposure to companies that lead the development of vehicle connectivity like Internet of Vehicles (IoV) and Intelligent Mobility.
- Exposure to the growth brought on by increased demand for lithium-ion battery and non-ferrous metals like lithium due to electric vehicle adoption.
- Exposure to equities listed in Mainland China, currently the world's largest electric vehicle market.
Future Mobility Sector Highlights:
- 70% of new car sales and over 40% of the global car fleet are projected to be electric by 2040.
- The global electric vehicle (EV) market revenue is projected to reach $990 billion by 2029.
- Global electric car sales were estimated at almost 20 million in 2025, a 25% year-on-year increase from 2024.
- Passenger car advanced driver-assistance systems and autonomous driving systems could generate between $300 billion and $400 billion in the passenger car market by 2035.
The Electric Vehicle (EV) & Future Mobility Ecosystem
| Category | Definition |
|---|---|
| Vehicles | Electric vehicles (EV) manufacturers are the brands that consumers know and are the largest group in the ecosystem. |
| Components | EVs often require complex components, especially for sensors if they are at all self-driving, that are made by specialized firms. |
| Batteries | Adoption of electric vehicles and other new energy vehicles dramatically increases demand for lithium-ion and other types of batteries. |
| Charging | Electric vehicle adoption requires robust, widespread, and efficient charging stations and infrastructure. |
| Raw Materials | Adoption of electric vehicles and other new energy vehicles may drive demand for raw materials such as lithium. |
| Autonomous Driving | Autonomous driving is the new frontier of mobility, improving outcomes and experience. |
By the end of 2024, there were nearly 60 million EVs on the world's roads, mostly in China.
Electric Vehicles Globally
Bar chart showing the number of electric vehicles globally from 2019 to 2024, broken down by World, China, European Union, and United States.
- By end of 2024, nearly 60 million EVs on the world's roads, mostly in China.
By the end of 2040, there could be over 300 million EVs on the road thanks to strong government subsidies and declining costs.
- 70% of new car sales and over 50% of the global car fleet are projected to be electric by 2040.
- Government subsidies play a key role in EV adoption rates, and countries with strong subsidy programs, such as China, tend to lead in EV adoption.
- China accounted for over 50% of global EV sales in 2025.
- In 2025, 15.3 million electric and new energy vehicles were sold in China, while Europe and the United States combined for 6.8 million.
- Rising average mileage per vehicle and lower mileage per trip brought on by ride-sharing platforms may result in electric vehicles becoming more cost-competitive than vehicles with traditional internal combustion engines (ICEs).
Global EV Sales as % of Total Light Vehicle Sales (Projection)
| Year | % of Total Light Vehicle Sales |
|---|---|
| 2025 Actual | 23% |
| 2030 | 28% |
| 2035 | 43% |
| 2040 | 55% |
Electric vehicle batteries reached price parity with internal combustion engines (ICEs) in 2025, which may help encourage voluntary adoption by consumers.
Battery Price vs. ICE Price
Bar chart showing average battery price ($ per KwH) from 2013 to 2025 compared to ICE parity line.
- Battery prices declined by -84% from 2013 to 2025.
- In 2025, average battery price reached parity with ICE (~$100/KwH).
Government policies, mostly in Europe and Asia, could lead to more EV adoption over the coming decade.
Some countries have set 2050/2060 as target dates to be carbon neutral.
Internal Combustion Engine (ICE) Phase-Out Plan
| Country | Ban Announced | Potential ICE Phase Out Date |
|---|---|---|
| Canada | 2017 | 2035 |
| China | 2017 | Pending |
| France | 2017 | 2035 |
| Israel | 2018 | 2030 |
| Netherlands | 2017 | 2030 |
| Norway | 2017 | 2025 |
| Singapore | 2020 | 2030 |
| Sweden | 2018 | 2030 |
| United Kingdom | 2020 | 2030 |
Many companies across a diverse array of sectors contribute to making electric and autonomous vehicles possible.
Charging
- Plug Power
- TGOOD
Raw Materials
- Tianqi Lithium
- CMOC (洛阳钼业)
Batteries
- CATL
- Panasonic
Autonomous Driving
- Horizon Robotics
- Aurora
Entire Vehicle & Component Manufacturers
- BYD
- Tesla
- NIO
- Xiaomi
Raw materials represent nearly two-thirds of a battery's cost, making them a crucial part of the EV supply chain.
Battery Cell Pricing Case Study
| Category | $/kWh |
|---|---|
| Cell Materials | 59 |
| Labor | 4.7 |
| Manufacturing | 3.7 |
| Equipment Dep. | 4.5 |
| Plant dep. | 1.4 |
| R&D | 10.5 |
| Marketing & Sales | 5.3 |
| Management | 8.4 |
| Financial | 1.1 |
| Logistics | 2.3 |
| Inventory | 0.5 |
| Tax | 0.5 |
| Others | 0.5 |
| Subsidy | 0 |
| Margin | 5.4 |
| Total | 107.6 |
Key: Cost Output, Company Expense, Delivery Cost, Subsidy, Margin, Total
Autonomous driving is the new frontier of mobility, and it is advancing more rapidly than you might think.
- Over 30 million rides were completed by robotaxis in 2025.
- 90% of new cars on the market are expected to feature some assisted driving features by 2030.
- There is an entire ecosystem of firms building autonomous capabilities for ride hailing platforms and automakers.
- Many of these companies are also involved in providing advanced sensors to the nascent global robotics industry.
- KARS now captures many of these unique companies
| Name | KARS Weight (as of 31/Dec/2025) | Contribution to Autonomous Systems |
|---|---|---|
| Horizon Robotics | 2.41% | Advanced Sensors |
| Aurora Innovation | 1.57% | Autonomous systems for long-haul trucking |
| Nav Info | 0.23% | Dynamic mapping for autonomous systems |
| Pony AI | 0.65% | Fully autonomous driving systems |
| Mobileye Global | 0.44% | Advanced driver-assistance systems (ADAS) |
BYD now outpaces Tesla in total sales and is now the largest electric vehicle maker globally.
Tesla vs BYD: Total Sales ($ Billions)
| Year | BYD | Tesla |
|---|---|---|
| 2021 | ~34 | ~54 |
| 2022 | ~63 | ~81 |
| 2023 | ~85 | ~97 |
| 2024 | ~107 | ~98 |
We believe certain indexes may exclude key components of the global EV supply chain, while others may include companies with little to no direct revenue from EVs.
| Company | KARS Status | Note | Weight in KARS | Weight in Solactive Autonomous & Electric Vehicles Index | NYSE FactSet Global Autonomous Driving & Electric Vehicles Index |
|---|---|---|---|---|---|
| CATL | Overweight | CATL is the world's largest supplier of EV batteries | 3.81% | 0.00% | 0.00% |
| Alphabet | Excluded | Alphabet is a global internet company with little revenue from EV and autonomous vehicles. | 0.00% | 4.09% | 0.00% |
| BYD | Overweight | BYD is the world's largest EV manufacturer. | 4.09% | 0.94% | 3.85% |
KARS is overweight China, where the most EVs were sold in 2025, compared to other leading EV indexes.
KARS Geographic Breakdown
- China: 53%
- United States: 19%
- South Korea: 7%
- Australia: 7%
- Japan: 6%
- Others: 8%
Solactive Autonomous & Electric Vehicles Index
- China: 26%
- United States: 27%
- South Korea: 15%
- Australia: 6%
- Japan: 1%
- Others: 25%
NYSE FactSet Global Autonomous Driving & Electric Vehicles Index
- China: 12%
- United States: 50%
- South Korea: 5%
- Australia: 8%
- Japan: 11%
- Others: 14%
KARS provides exposure to multiple segments within the electric vehicle ecosystem.
KARS Industry Breakdown
- Vehicles: 38%
- Raw Materials: 27%
- Batteries: 14%
- Components: 12%
- Autonomous: 8%
- Charging: 1%
Catalysts for EVs & Future Mobility Going Forward
- Lower rates in the US and major emerging markets
- Recovery in consumer sentiment and high-ticket consumption activities in China
- Battery or range innovation and proliferation of chargers
- Reaching global policy equilibrium; the impact of anti-EV administration in the US is now known.
- Global cost per KwH potentially falling below cost of ICE after reaching parity last year.
KraneShares Electric Vehicles & Future Mobility Screened UCITS ETF
Investment Strategy
KARS is an index-tracking, passively managed, UCITS ETF that is benchmarked to the Bloomberg Electric Vehicles Screened Index. The fund provides exposure to companies that are engaged in the production of electric vehicles, their components, or other initiatives that may change the future of mobility.
Fund Details (Data as of 31/Dec/2025)
| Detail | Value |
|---|---|
| Listed Exchanges | ISE, LSE |
| SEDOL | BMF1F06 |
| Total Annual Fund Operating Expense | 0.72% |
| Inception Date | 25/May/2022 |
| Distribution Frequency | Accumulating |
| Index Name | Bloomberg Electric Vehicles Screened Index |
| Net Assets | $5,134,246 |
| Number of Holdings | 81 |
| UK Reporting Fund Status | Reporting Fund |
| Investment Structure | UCITS |
| Base Currency | USD |
Top 10 Holdings as of 31/Dec/2025
| Ticker | % |
|---|---|
| Panasonic Holdings Corporation (6752) | 4.60 |
| STMICROELECTRONICS NV (STMPA) | 4.41 |
| BAYERISCHE MOTOREN WERKE AG (BMW) | 4.35 |
| TESLA INC (TSLA) | 4.30 |
| BYD CO LTD -A (002594) | 4.09 |
| XIAOMI CORP-CLASS B (1810) | 4.05 |
| CONTEMPORARY AMPEREX TECHN-A (300750) | 3.81 |
| CMOC GROUP LTD-A (603993) | 3.33 |
| NIO INC-CLASS A (9866) | 3.25 |
| RIVIAN AUTOMOTIVE INC-A (RIVN) | 3.25 |
KARS Performance History as of 31/Dec/2025
| 3 Mo | 6 Mo | Since Inception | 1 Yr | 3 Yr | 5 Yr | Since Inception | |
|---|---|---|---|---|---|---|---|
| Fund NAV | -1.06% | 38.55% | -10.72% | 43.72% | 2.63% | – | -3.10% |
| Index | -1.35% | 38.14% | -6.78% | 43.90% | 3.63% | – | -1.93% |
Index Definitions
STOXX Global Electric Vehicles & Driving Technology Index: The STOXX Global Electric Vehicles & Driving Technology Index is comprised of companies from selected countries exposed to a defined theme: electric vehicles and assisted-driving technologies. This includes firms which are involved in the manufacturing of electric vehicles, electric vehicle batteries and charging equipment, driving technologies and suppliers in the electric vehicle manufacturers' supply chain. The index was launched on October 24, 2018.
ACWI IMI Future Mobility ESG-Screened Index: The MSCI ACWI IMI Future Mobility Index is based on the MSCI ACWI IMI Index, its parent index, and includes large, mid and small-cap securities across Developed Markets (DM) and Emerging Markets (EM) countries. The index aims to represent the performance of companies that are associated with the development of new products and services focused on energy storage technologies, autonomous vehicles, shared mobility and new transportation methods. The index was launched on September 23, 2019.
Nasdaq Global Future Mobility Index: The Nasdaq Global Future Mobility Index is designed to track the performance of companies engaged in the following themes: Autonomous Vehicles, Quantum Information & Optics, 3D Graphics, Electric Vehicles, Hybrid Vehicles, Electric Batteries and Lithium Batteries. The index was launched on November 12, 2018.
Important Notes
Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' full and summary prospectus, which may be obtained by visiting www.kraneshares.eu. Read the prospectus carefully before investing.
Risk Disclosures
- The views and opinions expressed in this material are those of the authors Krane Fund Advisors and are subject to change without notice.
- UCITS ETF's units/shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF.
- KARS seeks to promote a combination of environmental and social characteristics within the meaning of Article 8.
- KARS promotes environmental characteristics but does not commit to making environmentally sustainable investments as defined in the Taxonomy Regulation.
- UCITS shares are not redeemable with the issuing fund other than in large Creation Unit aggregations.
- Investing involves risk, including possible loss of principal.
- The Funds are subject to political, social, or economic instability within China, which may cause a decline in value.
- Emerging markets involve heightened risk related to the same factors as well as increased volatility and lower trading volume.
- Narrowly focused investments typically exhibit higher volatility.
- Clean technology companies are subject to rapid changes in technology, worldwide competition, rapid obsolescence of products and services.
- KARS is non-diversified.
Risk Disclosures (Continued)
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Although the information provided in this document has been obtained from sources which Krane Funds Advisors, LLC believes to be reliable, it does not guarantee the accuracy of such information and such information may be incomplete or condensed. Krane Funds Advisors, LLC is appointed to act as investment manager in accordance with the requirements of the Central Bank. The Management Company may decide to terminate the agreements made for the marketing of the Fund in accordance with Article 93a of Directive 2009/65/EC.
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