While the recently, announced fuel hike is expected to take its own toll from the consumers and auto industry as well in the short run but the senior officials in the automobile sphere have welcomed the idea of free pricing in the industry.

Society of Indian Automobile Manufacturers (SIAM) President Pawan Goenka said in a statement that the policy of linking the fuel price to the free market is a right approach to follow for the rapidly growing Indian market.

General Motors India Vice-President P Balendran said that it was an expected move as the rise in fuel cost was inevitable keeping in mind that it has to be linked to the free market.

It is to be mentioned here that the government recently hiked the rates by up to Rs 3.5 per litre while the diesel rates were also increased by Rs 2 a litre.

In fact, when the prices of the fuel were close to Rs. 2-3/litre, the car sales were minimal and when the prices have today crossed Rs. 50 the car sales are at the top level and the industry is expected to grow in a similar manner even going in the long-run.