Car manufacturers are no longer merely selling vehicles. Their products now include software, subscriptions, and AI-driven features.

The most recent Gartner Digital Automaker Index 2025 indicates that those who can manufacture cars using recurring-revenue software platforms will be the winners of the next decade.

For investors in ETFs, this poses a key question: Which funds provide exposure to the software-first vehicle manufacturers that Gartner expects to lead the way?

China-based manufacturers now have an average 53% digital score, outpacing U.S. counterparts (50%), and significantly outpacing Europe (33%) and Japan (26%). The largest movers: Nio Inc NIO, XPeng Inc XPEV, Xiaomi Corp XIACF, Li Auto Inc LI, and Geely Automobile Holdings Ltd GELYF.

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That bias makes ETFs with high China EV exposure of particular interest:

Gartner also highlighted Hyundai-Kia and Stellantis NV STLA as the largest winners due to over-the-air update deployments, AI-driven voice assistants, and board-level tech appointments.

ETFs that include both legacy and next-gen players allow investors to hedge the risk of a comeback:

The vehicle industry is going from batteries to bytes. Subscription software, connected features, and AI assistants are the next huge revenue drivers, according to Gartner.

ETFs with a higher weighting towards Chinese digital-first automakers could offer more pronounced upside, while balanced funds provide safer exposure if legacy OEMs manage to catch up.

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