“Consumer mindsets have changed. There is an increase in the shift towards sustainability. The automotive industry contributes a massive amount to CO2 emissions; therefore, sustainable automotive is the top priority for automotive players and governments globally. Incentivising EVs and numerous schemes are being floated to encourage the same. We already have EV leaders, and Tesla tops the list. But will only big leaders like Tesla dominate the market? What about start-ups that are working towards developing new EV technologies? There is a lot underlying that needs to be analysed. Also, is electrification enough? The journey towards sustainable automotive is more complex and consists of multiple milestones.”

Over recent years, there has been a paradigm shift in modern consumers' mindset concerning automobile.

The industry was already going through an inflection point owing to various factors. However, the pandemic has accelerated this even further and is responsible for tilting the balance in favour of genuinely green solutions.

Demand for better air quality and concern for the planet is driving the continuously increasing demand for sustainable automotive, forcing automotive players and stakeholders to evolve, adapt and transform.  

According to Statista, passenger cars produced approximately 3 billion metric tonnes of CO2 in 2020. These were the statistics when pandemic-imposed lockdowns prevailed globally, and there was a reported decrease in air pollution levels. NASA researchers reported at least a 20% reduction in nitrogen oxide levels.

Therefore, many residents in heavily polluted cities of the world experienced cleaner air, something that had been missing for years. This contributed massively to the shift in societal preferences globally. Given this change and the recognition of a sustainable environment, governments globally are pushing for sustainable transportation solutions, imposing strict emission norms, and incentivising electric vehicles. According to this WEF article, governments globally have spent $14 Billion to support electric car sales, a 25% jump from 2019. In Norway, EVs are not subjected to the 25% VAT on motor vehicles. Germany offers purchase incentives of 4,000 Euros on the purchase of electric vehicles. California has a Clean Vehicle Rebate Project that offers rebates from $1,000 to $7,000 on the purchase or lease of new eligible zero-emission vehicles. The electrification of automotive and vehicle fleets constitutes a significant part of the overall sustainability efforts.