Auto Industry hails the govt's move to decontrol petrol prices

The automobile industry of India, which has been witnessing the best ever growth momentum since the starting of this year, has welcomed the government's move of decontrolling petrol prices. The industry has termed it as a prudent way to strengthen the continuously growing economy and also stated that the ongoing high growth momentum will continue to boost the sector despite the recent hike in fuel prices.

Mr Pawan Goenka, the President of the Society of Indian Automobile Manufacturers (SIAM) told to reporters in a statement that the decision to link fuel prices to market prices is the only prudent approach for a rapidly growing economy like India. The SIAM also stated that it hopes that diesel pricing will also be made
market-driven in the coming months and the increase in the price of fuel will not harm the car sales in India.

The industry body further stated that the auto sector anticipates that this increase in fuel prices may not have any adverse impact on sale of vehicles due to the buoyant market demand for vehicles in the country.

The largest car maker Maruti Suzuki has hailed the government's move and stated that decontrolling petrol prices is a good and sound step taken by the government.   Mr R C Bhargava who is the Chairman of the company said that in the short-term, sales of small cars may jump more, while big cars may witness a slowdown in sales. While at the same time, General Motors India's Vice-President P Balendran has stated that the industry will be affected in the short-term, but in the long run, it will be able to absorb.