The automotive retail sales in India saw a decline of 12.49 per cent in December, with 17,56,419 units registered, compared to 20,07,042 units last year, according to data released by the Federation of Automobile Dealers Associations (FADA).

In terms of segment-wise performance, two-wheeler sales came at 11,97,742 units, down 17.6 percent YoY, three-wheeler at 93,892 units, down 4.5 percent YoY, passenger vehicle sales at 2,93,465 units, down 1.9 percent YoY and commercial vehicles at 72,028 units, down 5.2 percent YoY. In contrast, tractor sales were in the green at 99,292 units, up 25.7 percent YoY.

The decline in sales for petrol-powered two-wheelers were attributed to low cash flow, poor market sentiment, supply challenges for popular models and growing shift towards electric vehicles.

FADA President C S Vigneshwar stated that despite heightened discounts and limited financing options failed to offset demand. In the passenger vehicle space, dealers were looking to offload the high inventory buildup following the festive season and aggressive discounting to clear stocks. But poor market sentiment, limited new model launches and intense price competition had impacted the PV segment.

For the commercial vehicle segment, the slowdown was attributed to low market sentiment, delayed government fund releases and slow financing approvals. Barring tippers, LCV degrowth and unseasonal rains further added to retail slowdown.

For CY2024, the auto retail sales grew 9.1 percent YoY at 2,61,07,679 units as against 2,39,28,293 units sold last year. This includes two-wheelers growing by 10.7 percent YoY, three-wheelers at 10.4 percent YoY, passenger vehicles at 5.1 percent, tractor at 2.5 percent and commercial vehicles reporting flat growth respectively.

“Despite multiple headwinds in CY24 – including heatwaves, elections at both central and state levels and uneven monsoons – the auto retail industry remained resilient, closing the year with a 9% YoY growth. Notably, three-wheeler, passenger vehicle and tractor segments touched new all-time highs and two-wheeler barely missed surpassing its CY18 peak. CV is also yet to reach its CY18 peak, a year which saw the introduction of axle load norms,” said Vigneshwar.

Outlook remains positive

The auto dealer body expects that the coming months will see stable growth two-wheeler, commercial vehicles and passenger vehicles to remain in the green.

The confidence stems on the back of improvement in rural liquidity, evolving government policies, new product launches, infrastructure investments, stable credit availability to support the growth.

FADA stated that it remains optimistic on market recovery, coupled with strategic OEM support and policy-level clarity, that will enable retail sales to end CY2025 on a robust note.

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JSW MG Motor India has introduced the all-new MG Hector SUV featuring a revised exterior with new front and rear bumper designs, a new grille design and new alloy wheels at prices starting INR 1.19 million (ex-showroom) for limited units. The SUV comes in two new colours – Celadon Blue and Pearl White.

The interiors feature a Dual Tone Ice Grey Theme in the 5-seater trim and Dual Tone Urban Tan for the 6 and 7-seater trims. Exterior details include the new Aura Hex Grille, a hexagonal structure that symbolises strength and precision. New Aura Sculpt Bumpers at the front and rear deliver a muscular, assertive stance and also the Aura Bolt Alloy Wheels.

The all-new Hector's infotainment system, featuring a 14-inch HD portrait touch screen, receives a performance boost through Smart Boost technology. The system features the i-SWIPE Touch Gesture Control, enabling intuitive multi-touch operations for AC, music and navigation. Further convenience is provided by the Digital Bluetooth Key and Key Sharing capability along with Predictive Maintenance Alerts, Remote AC Control. A Full Digital Cluster with a 17.78 cm Embedded LCD Screen provides a driver interface.

Anurag Mehrotra, Managing Director, JSW MG Motor India, said, “The Hector was our maiden nameplate and quickly became synonymous with the MG brand, emerging as one of India’s most loved SUVs with 150,000 customers since its debut. With the All-New MG Hector, we take this legacy a notch higher by enhancing its design, comfort, and technology, offering an unmatched value proposition. We believe truly advanced mobility should not be an exclusive luxury reserved for the few. With this superior package, The All-New MG Hector will further democratize technology while setting a new benchmark for what a premium SUV can deliver.”

The new Hector also features a 360deg HD Camera with Wheel View, offering surround visibility along with tyre-level perspective. In terms of standard it gets ABS, EBD, ESP, TCS, Hill Hold Control and Brake Assist. The SUV is powered by a 1.5L Turbocharged Petrol engine (CVT & MT) offering 143 PS Power and 250 NM Torque.

Launched in 2019 as India’s First Internet Car, the MG Hector includes features such as a dual-pane panoramic sunroof, a 35.56 cm (14-inch) HD infotainment system, 8-colour Ambient Mood Lighting, and MG’s advanced i-SMART connected technology with 70+ features, and an advanced ADAS suite. Further features include Push Button Engine Start/Stop with a Smart Key and Anti-Theft Immobilisation, automatic powered tailgate, air purifier with PM 2.5 filter, rain sensing wipers, Remote Control for Audio, AC & Mood Light in i-Smart App and front parking sensors.

The prices for the diesel variant of the all-new Hector SUV will be announced next year.

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The Tata Sierra has entered the India Book of Records for maximum fuel efficiency in 12 hours. In a certified run at NATRAX Indore, the Sierra delivered an exceptional 29.9 kmpl mileage, surpassing the previous national benchmark. The feat was executed by the Pixel Motion team, that drove the 1.5-lire Hyperion-engine powered Sierra continuously from 7:00 am to 7:00 pm on 30 November 2025 with brief halts for driver swaps. The record was officially validated the same day.
The new 1.5-litre Hyperion petrol engine, engineered to deliver high efficiency without compromising refinement, performance or drivability, has an advanced combustion system, torque-rich performance band and friction-optimised architecture. 
The compact SUV also achieved a top speed of 222 kmpg at the track under specified test conditions. 
“Setting a national efficiency record so early in the Sierra’s journey is a proud moment for us. The Hyperion engine platform was built to push the boundaries of what petrol powertrains can achieve, and this milestone validates that effort. It strengthens the Sierra’s value proposition for customers and underlines TMPV’s commitment to bringing advanced, efficient and future-ready technologies to the market," said Mohan Savarkar, Chief Product Officer, Tata Motors Passenger Vehicles. 

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Matthew Bowden is concluding a successful four-year tenure as Director of Škoda UK, departing to assume the role of Head of International Sales for Škoda Auto. Under his leadership, the UK market achieved significant growth, rising to become the brand's third largest global market and consistently exceeding performance records while maintaining a market share beyond four percent.

His successor, Eric Boutin, will join the Volkswagen Group UK board of management as Director of Škoda UK in the first quarter of 2026. Boutin brings extensive international experience from pivotal markets including Canada, China and United States. He is currently responsible for Škoda Auto's global customer experience programme, with direct oversight of the worldwide retail network and omnichannel integration, and is spearheading the brand's overarching customer centricity transformation.

This strategic leadership transition aims to leverage Bowden's commercial acumen on a global scale while injecting Boutin's specialised customer-focused expertise into the UK operations.

Damien O’Sullivan, Managing Director, Volkswagen Group UK, said, “Matthew has made a significant contribution towards Škoda’s evolution and growth over the past four years. I’m grateful for all he’s done for the brand and the Group and wish him well in his new role. I’m looking forward to welcoming Eric to the UK board of management and am sure his global experience and customer focus will support the brand’s future ambitions and Human Touch proposition.”

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Mahindra & Mahindra Ltd has revealed that it will launch the XUV 7XO, which is based on the XUV 700, on 05 January 2026. A premium SUV segment vehicle, the XUV 7XO, the company claims, will be a gamechanger. Said to have been crafted to inspire and engineered to excite, combining the proven strengths of the XUV700 with superior design, technology, comfort and performance, the XUV 7XO is expected to be a feature a fascia with the new signature grille design and '7'-shape sleeker LED head lamps. 
Claimed to draw an amount of design and styling details from the new seven-seater electric SUV the company introduced recently, the XUV 7XO is expected to built on the technologies that made the XUV 700 a competitively priced tech savvy SUV with monocoque construction and an option of an AWD. As an ICE vehicle the 7XO is expected to further the gamut of features found on the XUV 700, including the ADAS Level 2 suite. 

The XUV 7XO is expected to replace the XUV 700 over a period of time if not immediately. 

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