April Sees 33.9% Year-on-Year Growth in New Energy Vehicle Retail Sales, ETFs for New Energy Cars and Solar Power Surge

In April, the retail sales of new energy passenger vehicles reached 905,000 units, marking a 33.9% year-on-year increase. The New Energy Vehicle ETF (515700) saw an early morning rise of over 1%, while the Photovoltaic ETF Fund (516180) increased by more than 1.4%.

As of May 12, 2025, 09:50, the CSI New Energy Vehicle Industry Index (930997) surged by 1.22%. Notable contributors included Yinlun Co., Ltd. (002126), which rose by 4.19%, and Xiamen Tungsten Co., Ltd. (688778), which saw an increase of 4.08%. Other stocks such as Sanhua Intelligent Controls (002050) and Xingyuan Material (300568) also experienced gains. The New Energy Vehicle ETF (515700) appreciated by 1.23%, with a latest price of 1.65 yuan. Over the past week leading up to May 9, the ETF has accumulated a 2.52% increase, ranking it within the top half of comparable funds.

According to data from the Passenger Car Association, the retail sales of new energy vehicles in April totaled 905,000 units, reflecting a 33.9% increase year-on-year but a 8.7% decrease month-on-month. Cumulatively, from January to April, retail sales reached 3.324 million units, up by 35.7%. In April, the retail penetration rate of new energy vehicles in the overall domestic passenger car market was 51.5%, an improvement of 7 percentage points compared to the same period last year.

According to Guojin Securities, the market competition remains intense this quarter, with diminishing space for domestic and electric vehicle replacement. The average selling price (ASP) of vehicles is continuing to decline; however, companies with strong cost reduction capabilities can simultaneously enhance their gross margins despite the drop in ASP. Therefore, from a fundamental perspective, they recommend a strategy focused on low-cost operations, strong product creation abilities, and robust new vehicle cycles.

As of May 12, 2025, 09:50, the CSI Photovoltaic Industry Index (931151) rose by 1.83%. Key performers included Sungrow Power Supply Co., Ltd. (300274), which saw an increase of 6.46%, and DeYee (605117), which grew by 4.22%. The Photovoltaic ETF Fund (516180) also increased by 1.47%, with a latest price of 0.55 yuan. Over the past week leading up to May 9, the Photovoltaic ETF Fund has recorded a cumulative increase of 2.84%, ranking it within the top decile of comparable funds.

In terms of liquidity, the Photovoltaic ETF Fund had a turnover of 1.3% during the day, with a transaction volume of 800,000 yuan. Over the past year, the average daily transaction volume for the fund was 4.6207 million yuan. The latest share count for the Photovoltaic ETF Fund reached 111 million shares, setting a new high for the past month.

According to a research report from CITIC Securities, the profitability of the photovoltaic industry has significantly declined based on the annual report for 2024 and the first quarter report for 2025. However, the report suggests that the bottom of the industry’s financial performance has been reached, with substantial fixed asset impairments in the fourth quarter and the impact of double-reverse measures in Southeast Asia already reflected in financial reports. The likelihood of further deterioration in profitability is considered low.

As of May 12, 2025, 09:50, the CSI New Materials Theme Index (H30597) increased by 1.11%. Stocks such as BTR New Materials (835185) rose by 7.46%, while Contemporary Amperex Technology Co., Limited (300750) grew by 2.80%. The New Materials ETF Index Fund (516890) appreciated by 0.60%, with a latest price of 0.50 yuan. Over the past week leading up to May 9, this fund recorded a cumulative growth of 2.27%, placing it within the top seventh of comparable funds.

Industry reports indicate that South Korean battery manufacturer SK On is accelerating the development of solid-state batteries using polymers, oxides, and sulfides. The company has discovered a new protective layer that could significantly enhance the cycle life of lithium-metal batteries. Current electric vehicle batteries typically show performance degradation after 1,000 to 10,000 charge-discharge cycles, but SK On claims to have tripled this lifespan.

Solid-state batteries represent a revolutionary battery technology, primarily utilizing solid electrolytes instead of the liquid electrolytes found in traditional lithium-ion batteries, providing significant advantages in safety and energy density.

Shengang Securities has stated that the industrialization of solid-state batteries is likely to accelerate. In February, experts, scholars, research institutions, and corporate representatives gathered at the Second China All-Solid-State Battery Innovation Development Summit Forum to discuss breakthroughs and challenges in material science, new processes, and industry advancements. Many experts believe that solid-state batteries could be mass-produced and installed by 2027.

Investors can consider the Photovoltaic ETF Fund (516180), the New Materials ETF Index Fund (516890), and the New Energy Vehicle ETF (515700) to capture investment opportunities in these related sectors.

The New Energy Vehicle ETF closely tracks the CSI New Energy Vehicle Industry Index, which includes 50 listed companies involved in the new energy vehicle sector, reflecting the overall performance of leading firms in this industry.

As of March 31, 2025, the top ten weighted stocks in the CSI New Energy Vehicle Industry Index (930997) included BYD (002594), Inovance Technology (300124), and Contemporary Amperex Technology Co., Limited (300750), with these ten stocks accounting for 57.98% of the index.

The Photovoltaic ETF Fund closely tracks the CSI Photovoltaic Industry Index, which selects up to 50 representative listed companies involved in the photovoltaic industry chain to reflect the overall performance of these firms.

As of March 31, 2025, the top ten weighted stocks in the CSI Photovoltaic Industry Index (931151) included LONGi Green Energy (601012) and Sungrow Power Supply Co., Ltd. (300274), with these stocks representing 55.78% of the index.

The New Materials ETF Index Fund closely tracks the CSI New Materials Theme Index, which includes 50 listed companies involved in various advanced materials sectors to reflect the overall performance of these firms.

As of March 31, 2025, the top ten weighted stocks in the CSI New Materials Theme Index (H30597) included Contemporary Amperex Technology Co., Limited (300750) and North Huachuang (002371), accounting for 52.75% of the index.

Related products include the New Energy Vehicle ETF (515700) with off-market connections (Ping An CSI New Energy Vehicle ETF Connection A: 012698; Connection C: 012699), the Photovoltaic ETF Fund (516180) with Ping An Photovoltaic Index Fund (Class A: 012722; Class C: 012723), and the New Materials ETF Index Fund (516890).