So after thinking for a while I was able to achieve height: auto in react-native image.
You need to know the dimensions of your image for this hack to work. Just open your image in any image viewer and you will get the dimensions of the your image in file information.
For reference the size of image I used is 541 x 362
First import Dimensions from react-native
import { Dimensions } from 'react-native';
then you have to get the dimensions of the window
const win = Dimensions.get('window');
Now calculate ratio as
const ratio = win.width/541; //541 is actual image width
now the add style to your image as
imageStyle: {
width: win.width,
height: 362 * ratio, //362 is actual height of image
}