The country's largest home grown auto major, Tata motors is expected to give a tough fight to Hyundai for a second slot in the Indian passenger car market after the government has decided to free the prices on Petrol, it is believed that more hikes will come in the way of the Indian consumer.

Keeping in mind the fact that Tata motors has a decent offerings in diesel to offer to the Indian consumer while other players like Maruti Suzuki and Hyundai have a lot of dependence on petrol variants especially in small cars.

Mahantesh Sabarad, a Mumbai-based analyst at Fortune Equity Brokers India Ltd said that the first name that comes in mind about the benefit due to the petrol policy is Tata Motors.

As Tata Motors sell close to 80% of total vehicles under the diesel category, it is believed that the sales volumes will go up as the petrol price move on an upward trend.

Deepesh Rathore, managing director of IHS Global Insight India said Honda will have problems now and eve Hyundai hardly have a presence in small cars with diesel engines and hence will have troubles to grow.