Global Electric Vehicle (EV) sales have continued to rise, driven by lower prices.
According to the International Energy Agency's latest edition of the IEA's annual Global EV Outlook, global EV sales exceeded 17 million in 2024. This represented a 17% increase year-over-year.
As a result, EVs' share of the global market exceeded 20% for the first time on record. In the first quarter of 2025, EV sales increased 35% year-on-year.
The standout market was China, with EV sales accounting for more than half of all cars sold in 2024. Emerging markets in Asia and Latin America also experienced significant uptake, with EV sales across these regions increasing 60% in 2024.
In Australia, 100,000 EVs were sold in 2024. This represented 10% of new cars sold. The Electric Vehicle Council estimates there are now over 300,000 EVs on Australian roads.
Meanwhile, the US was the biggest laggard. EV sales increased by just 10% in 2024. As reported by The Australian, IEA also cut growth forecasts for this market. EVs are now expected to account for 20% of US car sales by 2030, less than half the estimate in last year's report.
Is this an opportunity for investors?
Evidently, a record number of consumers are being drawn to the benefits of EVs. These include lower running costs and maintenance, as well as environmental advantages such as less air pollution.
Investors may also see growth in the EV market as an opportunity. Fortunately, ASX investors can participate in the EV sector through the exchange-traded fund (ETF) BetaShares Electric Vehicles and Future Mobility ETF (ASX: DRIV).
For a management expense of 0.67%, the DRIV ETF provides exposure to up to 50 of the world's leading automotive technology companies. It allows investors to back the EV theme without having to pick a winner. As of 14 May, its top five holdings were Tesla (8.5%), Volvo (8.3%), BYD (8.2%), Paccar (6.7%), and Volkswagen (5.5%).
It is geographically diversified, with 32.2% holdings in the United States, 25.2% in China, 14.8% in Germany, and the remainder across several other countries.
How has DRIV ETF performed?
DRIV ETF made its debut in 2021. After surging dramatically the day it listed, it has been relatively flat since then.
However, those who invested a month ago are already up nearly 15%, significantly outpacing the S&P/ASX 200 Index (ASX: XJO), which has risen around 7% over the same period.
The DRIV ETF could be one to keep an eye on.
