- Oil uncertainty from the Strait of Hormuz blockade may boost electric car demand globally
- IEA projects electric cars to capture 30 per cent of the global car market by 2035
- China leads with 60% of global electric vehicle sales
Oil uncertainty exacerbated by the blockage of the Strait of Hormuz, the maritime choke point through which nearly one-fifth of the world's petroleum needs are fulfilled, has spurred momentum in the demand for electric cars, the International Energy Agency said in its yearly Global EV Outlook report. The agency projected that electric cars will likely capture 30 per cent of the global car market, with yearly sales exceeding 2.30 crore.
"The growing popularity of electric vehicles has brought a sea change to car markets and the global energy system as a whole, and it is providing relief amid the biggest oil supply crisis in history," said IEA director Fatih Birol on Wednesday.
The report analysed policies and trends linked to electric vehicles and charging infrastructure. It also assessed the impact of electricity and oil prices, and emissions on the industry.
Last year, the global EV market grew 20 per cent, with sales figures touching 2 crore cars. This meant one in every four cars sold in the world was electric.
Per IEA data, electric cars accounted for 10% or more of new cars sold in nearly 40 countries.
As for electric vehicle production, Chinese automobile manufacturers accounted for 60 per cent of global electric car sales, while European and North American manufacturers accounted for approximately 15% of global sales.
The report claims that electric vehicles are becoming increasingly cost-competitive in major global markets, which could further boost demand, especially among consumers concerned about oil price volatility in the Middle East and Asia crisis.
According to the IEA, the number of electric vehicles (excluding two-wheelers and three-wheelers) globally is projected to increase from approximately 80 million today to 510 million by 2035.
Also read: 'Petrol Prices Should Be Allowed To Rise': Economist Arvind Panagariya On PM Modi's Forex Appeal
Hormuz Blockade
After the US-Israeli attack, Iran blocked the Strait of Hormuz, from where the Middle Eastern countries transport their oil exports. The US has also blockaded the Strait. The conflict has sent the oil prices soaring across the world, including India.
India is among the worst-hit countries by the blockage-induced shortages.
Prime Minister Narendra Modi has appealed to the masses to conserve oil and foreign exchange reserves by avoiding "unnecessary" foreign travels, working from home and not purchasing gold.
Earlier this week, fuel prices were hiked for the fourth time in two weeks.
Also read: Fuel Prices Hiked By Rs 7 In 11 Days. Why Petrol, Diesel Rates May Rise Again
Petrol and diesel prices have been raised by over Rs 7 per litre through multiple hikes. The increases came in phases -- Rs 3, 90 paise, 87 paise and Rs 2.61 per litre. However, according to financial market estimates, this may not be enough.
Also read: New Deal, Old Fineprint: Iran Oil Sale, Hormuz Part Of Likely 60-Day US Truce
Finance Commission of India Chairperson Dr Arvind Panagariya told NDTV earlier this month that allowing fuel prices to rise is the right strategy to stave off the oil shock.
"Moral suasion is the first step. And the Prime Minister has wisely chosen to resort to it. And what comes ahead, we have to wait and watch. But I would rather that the shortages are dealt with through the price instrument, you know, allow the petrol price to rise," he had said.
