Heat the olive oil in a large pot. Add the onion and saute, over medium-high heat, until soft, about 5-6 minutes. Add the grated carrot, salt, and pepper and saute until soft. Reduce the heat to low and add the garlic. Saute until fragrant, about 1 minute.
Add the rest of the ingredients. Simmer on low, uncovered, until the sauce thickens, about 1 hour. Thin, if need, by adding water.