Half of new cars sold globally will be electric in next 10 years: Uday Kotak

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Investment information and credit rating agency (ICRA) had recently stated that the global automobile industry is witnessing major technological transitions, with a shift from conventional automobiles to electric vehicles.

India’s billionaire banker and managing director of Kotak Mahindra Bank, Uday Kotak also tweeted on Tuesday  expressing a similar line of thought that the electric vehicle’s demand will witness a major boom in less than 10 years.

Carmakers are shifting to electric and hybrid models in order to bring down the average fleet emissions by the conventional automobiles.

Kotak said that it is imperative for carmakers to innovate and undergo technological transitioning in order to stay relevant to market demands and environmental protocol.

In less than 10 years, half of all new cars sold globally will be electric. Profound implications for the climate, but also auto and energy companies. Many industries existentially threatened. Innovate or die, the 21st century mantra. pic.twitter.com/XD9IBfzvsw

— Uday Kotak (@udaykotak) June 1, 2021

The global automotive demand had declined during 2020 due to the COVID-19-related impact, but EVs remained the bright spot with approximately 40% growth over the previous years, as per the ICRA report.

The shift to EVs is inevitable. However, as per various studies, it is suggested that the pace of penetration will be relatively gradual in India unlike global markets like China, Europe, and the US.