Mirae Asset Seeks SEBI’s Nod For India’s First EV & New Age Automotive ETF

Days after the National Stock Exchange (NSE) launched a new index with a focus on companies which are part of the the electric vehicle (EV) and new-age automotive vehicle ecosystem, Mirae Asset Investment Managers (India) is looking to launch an exchange traded fund (ETF) focussed on this ecosystem.

The asset manager has filed documents for the ‘Mirae Asset Nifty EV and New Age Automotive ETF’ with the Securities and Exchange Board of India (SEBI).

ETFs are financial products that provide exposure to an index or a basket of securities or physical gold that trade on the exchange like a single stock. 

“This product will provide exposure to the current and upcoming ecosystem of EV and other new age automotive segments in India by capturing companies which currently have or are developing products and services in this space. This product will be a good addition to our existing lineup of exclusive products on global and domestic themes,” said Siddharth Srivastava, head of ETF products at Mirae Assets India.

The ETF will track securities included in the Nifty EV and New Age Automotive

Index. Its portfolio will include big-ticket players, companies that have received production linked incentive (PLI) nod in the automobile and battery segments, firms which are part of the Society of Manufacturers of Electric Vehicles (SMEV) and those participating in the Centre’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) initiative. 

In a statement, Mirae Asset said that the latest new fund offering (NFO), once approved by the SEBI, will be its sixth NFO this year so far. The asset manager also said that the EV-focussed ETF will be a “valuable” addition to its portfolio of products. 

Commenting on the development, Mirrae India’s vice chairman and CEO Swarup Anand Mohanty said, “… The long-term potential and opportunity size for EV and several other disruptions in the auto space is huge. Through this product, we want to provide an option for investors to take exposure in a portfolio of such companies”.

The latest development comes at a time when the adoption of EVs is on the rise in the country. 

The sales of EVs crossed the 15 Lakh mark in 2023, led primarily by two-wheelers and three-wheelers. 

Amidst this surge, the EV landscape is witnessing the rise of many new players who are catering to various segments. As a result, more and more players are witnessing healthy interest from both global and domestic investors. 

The segment is also getting a major push from the government with schemes such as FAME and the Scheme for Manufacturing of Electric Cars. A new EV policy is also in the offing as more and more players make a beeline for India to manufacture their products.