KARS ETF

Recent policy commitments within China lifted Mainland and Hong Kong markets in the last two weeks. Given the robust electric vehicle industry in China, it's no surprise that many of its EV companies' stocks soared on shifting investor sentiment.

China investing has offered investors upside and diversification for a long time, but of late, it's turned off those concerned by a stuttering overall economy in the People's Republic. Debt issues related to real estate continue to cast a long shadow over growth for the country's economy overall.

The sales of electric vehicles (EVs) are anticipated to be strong this year and are projected to increase significantly over the next ten years, as stated in a recent report from the International Energy Agency.

U.S. investors may have worries about China's political situation, but these concerns should not discourage them from investing. As demonstrated by U.S. Treasury Secretary Janet Yellen's recent trip to China, business interests have the potential to overcome differences between the two superpowers.

While electric vehicles have seen more muted demand in the United States, the same cannot be said for China. Chinese automaker BYD recorded sales of more than 600,000 electric vehicles in the first quarter of 2024, highlighting China's notable demand for climate-friendly vehicles.

Last year, Chinese EV and battery manufacturer BYD surpassed Tesla in units sold globally. The company threatens major global EV market disruption with its extreme affordability, relying on its vertical integration model to power through to success.

The price gap between electric vehicles and gas-powered cars is continuing to shrink. New data from Cox Automotive finds that the average EV price was $52,314 in February.

While EV manufacturing expenses have been a consistent roadblock for automakers, new research claims hope is on the horizon. Research firm Gartner recently predicted that, by 2027, battery electric vehicles will be cheaper on average to produce than comparable cars with internal combustion engines.

Looking to play the global energy transition while diversifying with global equities? Few areas are offering as much excitement right now as China's EV industry.