Global Sales of New Energy Vehicles Exceed 4 Million in Q1, Automotive ETF Rises Over 2%

According to the latest statistics from TrendForce, global sales of battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hydrogen fuel cell vehicles reached a total of 4.02 million units in the first quarter of 2025, marking a 39% year-on-year increase. This positive news has led to a rise of over 2% in the automotive ETF (516110).

Fundamentals: Positive Trends in New Energy Vehicle Sales

Globally, the first quarter of 2025 saw new energy vehicles accounting for 18.4% of total automobile sales. In China, sales growth in the automotive industry continues, driven by consumer support policies such as trade-in programs. The penetration rate of new energy vehicles is on the rise, confirming an overall positive trend in the industry. Retail sales of new energy vehicles recorded 905,000 units in April, reflecting a growth of 33.9% year-on-year, although it showed a slight decline of 8.7% month-on-month. The penetration rate for April reached 51.5%, with domestic brands achieving a penetration rate of 72.8% and a market share of 72%. Luxury and joint venture brands recorded penetration rates of 23.5% and 6.8%, respectively.

Technological Developments: The Ongoing Wave of Intelligence

In terms of technology, intelligent features remain a core driver for the upward cycle of new energy vehicles. The advent of multimodal large models is enhancing interactive capabilities in smart cabins. More than 20 automotive companies have integrated the DeepSeek large model, with many new players aiming to become “AI automotive companies.” Data from the Ministry of Industry and Information Technology indicates that by 2024, the penetration rate of L2 driving assistance features in new vehicles is projected to reach 57.3%, with technologies like adaptive cruise control and lane departure warnings becoming increasingly commonplace. The relationship between drivers and vehicles is evolving from “tool usage” to “partner collaboration,” making intelligence a key consideration for consumers when purchasing vehicles.

Financial Aspects: Significant Increase in Public Fund Investments

On the financial front, the latest quarterly reports from public funds indicate that the automotive, non-ferrous metals, and electronics sectors saw the greatest increases in investment during the first quarter of 2025. According to estimates from GF Securities, the automotive sector has become the most favored industry for fund allocation. The current allocation ratio for the automotive industry is at over 90% historically, reflecting institutional investors’ optimism toward the long-term fundamentals of the sector. However, caution is advised regarding potential insufficient upward momentum due to excessive institutional allocation.

Future Outlook for the Automotive Market

Looking ahead, the long-term prospects for automotive intelligence—including areas such as intelligent driving and smart cabins—remain promising. There are signs of improvement in the automotive industry’s fundamentals, supported by the direction of public fund investments. Investors are encouraged to keep an eye on the automotive ETF (516110) and consider strategic investments during market dips to capitalize on medium- to long-term growth opportunities.

Note: Market perspectives may fluctuate based on changing market conditions and do not constitute any investment advice or guarantees. The indices mentioned are for reference only and do not predict or guarantee fund performance. When considering investment in related fund products, please select those that align with your risk tolerance. Investing carries risks, and caution is advised.