There is no denying of the fact that the domestic automobile industry is on a roll and is going through one of the best growth phases in the history but the recently announced fuel hike is expected to dampen the unit sales in the country.

According to the officials of the automobile industry, the fuel hike will show its effect on the sales in the short term, but exuded confidence that it will be able to maintain the growth momentum in the long run.

Society of Indian Automobile Manufacturers (SIAM) Senior Director Sugato Sen said that the fuel hike will have an adverse impact on the unit sales of automobiles in the Indian market for the short run.

However, Maruti Suzuki India Chairman R C Bhargava labeled the decision as a good one by the government and said that the free pricing policy works globally also and the automobile industry in those destinations is growing.

Bhargava also highlighted the fact that the automobile industry will see a fall in sales of big cars and consumer may opt for small cars but the long term growth story of the industry remains intact.