New policies from two of the world's fastest growing markets have caused the International Energy Agency (IEA) to review its electric vehicle use and oil demand forecasts, according to reports.
Both India and China have recently showed they are in favour of expanding the use of electric cars and other alternative fuel vehicles, which could alter the IEA's current expectations that vehicle demand for oil will rise until 2040.
"We will therefore revisit our analysis of future [electric vehicle] market penetration on the basis of these new announcements for the next world energy outlook 2017, to be released on 14 November," an IEA spokesperson told Reuters.
China has recently said it wants alternative fuel vehicles to make up at least one-fifth of projected 35m annual vehicle sales by 2025, but India goes even further. A government think tank drafted a report in support of electrifying all vehicles in the country by 2032, Reuters reported sources said.
China and India currently consume 11 per cent and 2 per cent of gasoline demand, respectively, according to IEA data.
"The choices made by China and India are obviously most relevant for the possible future peak in passenger car oil demand," the IEA said.