Just a decade ago, the idea of selling two million electric vehicles (EVs) in a single month seemed impossible. However, in September 2025, worldwide sales of EVs jumped to 2.1 million cars – a historical high for the industry¹. The milestone speaks to just how far electrification has come — more than one out of every five new cars sold in the world in 2024 was electric².

This volume is based on tremendous dual-market demand. China, the largest auto market on Earth, accounted for nearly two-thirds of global EV sales³, fueled by pent-up consumer demand and waning government incentives. Europe and the U.S. were not far behind, where European EV sales increased 36% year over year with U.S. sales jumping by a remarkable 66% in that time⁴. Though demand may cool temporarily after imposing expiration of American tax credits, the longer arc of electrification we believe, highly compelling.

The Investment Implications of Electrification

Two million units isn’t just a number — it’s also an indication of a secular change in transportation and investing. Every EV surge sends ripples through an ecosystem of industries — from automakers to battery manufacturers, charging network developers and semiconductor providers. For investors, this integrated expansion means the whole mobility value chain is up for grabs.

Funds like the KraneShares Electric Vehicles & Future Mobility Index ETF (Ticker: KARS) offer one way to participate. The ETF provides targeted exposure to companies involved in the production of electric vehicles, battery technology, autonomous systems and other future mobility solutions. Instead of gambling on one automaker, investors can invest in a differentiated pool of global companies facilitating the shift to EVs.

Why Policy and Technology Matter

Policy tailwinds, tech innovation, and consumer demand continue to lift EV uptake. Governments are toughening emissions standards, prolonging green subsidies and spending heavily on charging infrastructure⁵. Nevertheless, investors should be aware of the risks. Changes in policy, automaker competition and supply chain bottlenecks for materials like lithium can introduce volatility⁶. But adoption of EVs is growing more quickly than most analysts had forecast just three years ago.

Conclusion: A Moment of Transition for Mobility Investing

Two million signals a potential turning point. From an idea of the future to a driver of global economic growth, electric mobility has experienced a remarkable transformation. For investors, this is not just an automotive trend — it’s a multi decade shift across clean energy, software and infrastructure. Participation in this evolution is possible via exposure to KARS, which can help reduce single-company risk.where internet penetration and digital payment adoption have increased recently.

Participation in this evolution is possible via exposure to KARS, which can help reduce single-company risk.

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For KARS standard performance, top 10 holdings, risks, and other fund information, please click here.

Footnotes

1. International Energy Agency, Global EV Outlook 2025, “Trends in Electric Car Markets.”
2. Reuters, “Global EV Sales Hit Record 2.1 Million in September,” October 2025.
3. Ibid.
4. Sustainability Online, “Global EV Sales Surpass Two Million in a Single Month,” October 2025.
5. IEA, Global EV Outlook 2025.
6. ETF Guide, “KARS Profile.”

Citations:

1. International Energy Agency (IEA), Global EV Outlook 2025 (Paris: IEA, May 14, 2025), accessed August 21, 2025. Authors include Oskaras Alšauskas, Giovanni Andrean, Elizabeth Connelly, Mathilde Huismans, YuJin Jeong, Teo Lombardo, Shane McDonagh, Vera O’Riordan, Leonardo Paoli, Apostolos Petropoulos, Jules Sery, Ottavia Valentini, and others.
2. Bloomberg News, “EVs Are Headed for Another Record Year, Even as the U.S. Pulls Back,” Bloomberg, June 18, 2025.
3. Patrick Hertzke, Patrick Schaufuss, Philipp Kampshoff, Timo Möller, Anna-Sophie Smith, and Felix Rupalla, “New Twists in the Electric‑Vehicle Transition: A Consumer Perspective,” McKinsey & Company (McKinsey Center for Future Mobility), April 22,  2025.
4. Rho Motion, “China Extends Its Vehicle Trade‑in Policy Scheme in a Boost to 2025 EV Sales,” Rho Motion, January 13, 2025.
5. International Energy Agency (IEA), Global EV Outlook 2025: Trends in Electric Car Markets (Paris: IEA, May 14, 2025), accessed August 21, 2025.