Auto Retail Declines 12.4% In December 2024, Outlook For FY2025 & CY2025 Remains Optimistic

Pexels/TomFlex

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.

Category Dec '24 Dec '23 Change (in units) Change (in %) Nov '24 Change (in %)
YoY YoY MoM
Two-wheeler 1,197,742 1,454,353 -256,611 -17.64% 2,615,953 -54.21%
Three-wheeler 93,892 98,384 -4,492 -4.57% 108,337 -13.33%
E-Rickshaw (P) 40,845 45,100 -4,255 -9.43% 40,391 1.12%
E-Rickshaw with Cart (G) 5,826 3,692 2,134 57.80% 5,423 7.43%
Three-wheeler (Goods) 9,122 9,546 -424 -4.44% 10,940 -16.62%
Three-wheeler (Passenger) 38,031 39,962 -1,931 -4.83% 51,466 -26.10%
Three-wheeler (Personal) 68 84 -16 -19.05% 117 -41.88%
Passenger Vehicle 293,465 299,351 -5,886 -1.97% 321,943 -8.85%
Tractor 99,292 78,944 20,348 25.78% 80,519 23.31%
Commercial Vehicle 72,028 76,010 -36,216 -47.65% 81,967 -51.45%
LCV 39,794 42,814 -38,152 -89.11% 47,530 -90.19%
MCV 4,662 4,987 17,794 356.81% 5,473 316.24%
HCV 22,781 23,904 -19,113 -79.96% 24,441 -80.40%
Others 4,791 4,305 486 11.29% 4,523 5.93%
Total 1,756,419 2,007,042 -250,623 -12.49% 3,208,719 -45.26%

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.

Renault Duster Turbo TCe 100 Achieves ARAI-Certified Fuel Efficiency Of 19.41 kmpl

Renault Duster

Renault India, a wholly-owned subsidiary of the French Renault Group, has announced the official ARAI-certified fuel efficiency for the new Duster Turbo TCe 100. The upcoming midsize SUV achieves a certified fuel economy of 19.41 kmpl, aiming to offer a balance of everyday performance and low fuel consumption.

The TCe 100 powertrain has been developed exclusively for the Duster line and features specific tuning to optimise thermal efficiency and power delivery. The SUV is built on Renault's all-new RGMP platform. The engine and drivetrain are comprehensively engineered to align with this advanced architecture's structural dynamics.

The turbocharged petrol engine produces a peak power output of 100 PS and 160 Nm of torque. Power is sent to the wheels via a 6-speed manual transmission, calibrated to deliver responsive performance and a smooth driving experience across varied road conditions.

Dr V. Vikraman, Chief of Renault Engineering at Renault Group India, said, “The ARAI-certified fuel efficiency reflects Renault’s focus on practical engineering and customer value. The Turbo TCe 100 engine uses turbocharging and efficient combustion to deliver responsive performance with strong fuel economy. With the 6‑speed manual transmission, the powertrain provides a balanced and efficient driving experience.”

Hyundai Motor India Launches Hyundai Innovation Challenge 2026 For Tech Startups

Hyundai Motor India

Hyundai Motor India, one of the leading passenger vehicle manufacturers, has announced the launch of the ‘Hyundai Innovation Challenge 2026’. The initiative invites applications from high-potential startups to collaborate on developing next-generation mobility and automobile technologies.

The program is curated and supported in partnership with ZER01NE, Hyundai Motor Group’s global open innovation platform. The challenge is structured as a 6-month innovation initiative designed to bridge the gap between entrepreneurial concepts and commercial validation. Hyundai Motor India is seeking cutting-edge software and hardware solutions across several core technology pillars – electrification & alternative energy systems; new mobility models & connectivity frameworks; Advanced Driver Assistance Systems (ADAS); Artificial Intelligence (AI)-driven automotive tools and next-generation integrated vehicle technologies.

While the application platform outlines 15 specific focus areas, the automaker encourages startups to submit any disruptive ideas that demonstrate strong potential for high-impact mobility solutions, even if they fall outside the listed criteria.

The program will run on a structured evaluation pipeline managed by LINK Innovation, a global startup consulting and accelerator platform. Startups can submit their entries through the designated LINK Innovation website until the end of June 2026. Applications will be reviewed on a rolling basis throughout the open timeline, judged against a set of preliminary technical and operational parameters. Shortlisted startups will undergo a rigorous review focusing specifically on their technology and product readiness levels. Shortlisted candidates will progress to a final pitch round hosted before HMIL's top management.

The selected startups for the final cohort will gain access to Hyundai's industrial capabilities to transform theoretical concepts into market-ready products. They will get opportunities to co-create future mobility solutions alongside Hyundai Motor India, backed by dedicated Proof-of-Concept (PoC) grants. Hands-on technical guidance and expert mentorship from engineering specialists. Access to Hyundai’s robust commercial ecosystem and customer base to unlock market exposure. Long-term avenues for potential corporate investments and enduring strategic business partnerships.

Tarun Garg, Managing Director & CEO, Hyundai Motor India, said, "At Hyundai Motor India, we strongly believe that the future of mobility will be shaped by collaboration, innovation and bold thinking. The Hyundai Innovation Challenge, curated in partnership with Hyundai Motor Group's ZER01NE team, is designed to bring together some of the brightest minds and most promising startups to co-create solutions that redefine mobility."

“Given India’s dynamic entrepreneurial ecosystem and its growing influence on global innovation, the Hyundai Innovation Challenge is poised to bring new tech innovations to the world of mobility. At HMIL, we see startups as partners and co-creators of a smarter, more sustainable future," said Garg.

Honda India Foundation Opens Haryana’s First Driving Practice Zone In Mahendragarh

Honda India Foundation

Honda India Foundation (HIF) has inaugurated a new Driving Practice Zone (DPZ) in Mahendragarh, marking the first facility of its kind in the state of Haryana. The community infrastructure project is designed to provide aspiring drivers with a safe, structured environment to practice driving skills and undergo essential road safety training. The facility will be fully accessible and open to the general public free of cost.

The project targets a prominent infrastructure gap common in Tier II and Tier III towns, where a lack of formal, dedicated driving enclosures often compels learners to practice on public roads, escalating safety risks for themselves and other commuters.

The newly opened Driving Practice Zone incorporates both practical and academic training spaces to build comprehensive driver competency before individuals transition to public roads –

  • Dedicated Practice Tracks: Specially engineered tracks to help learner drivers systematically build vehicle control, operational confidence, and manoeuvring skills.
  • Theoretical Classroom: A dedicated indoor learning space utilised for theoretical instructional sessions, focused on enhancing traffic rule compliance and general road awareness.

Vinay Dhingra, Trustee of the Honda India Foundation, said, “Road safety begins with access to the right training environment. Through this Driving Practice Zone, we aim to provide learner drivers with a safe, structured space to build driving skills, improve awareness and develop responsible road behaviour before they begin driving on public roads. This initiative reflects our continued commitment to making road safety training more accessible at the community level.”

Skoda Previews New Electric 7-Seater Peaq With Exterior Sketches

Skoda Peaq

Czech automaker Skoda Auto has released the initial exterior sketches of its upcoming flagship electric vehicle, the Skoda Peaq. The seven-seater SUV marks a new design direction for the brand, utilising clean surfaces, structured details and signature electric vehicle styling cues.

The world premiere of the new flagship SUV is scheduled to take place in Monnetier-Mornex, France, at 18:25 on 23 June 2026.

The exterior of the Peaq represents a consistent application of Skoda's new ‘Modern Solid’ design framework. The aesthetic balances rugged proportions with minimalist, aerodynamic elements tailored for the electric era.

The front features slender, T-shaped headlights and a gloss-black ‘Tech-Deck Face’. A connecting element runs between the assemblies to form a frame-like loop motif, which contrasts against a pronounced, volcano-shaped lower bumper.

The side profile is dominated by a high shoulder line and wide D-pillars to emphasise a wide, stable stance. The sketches also reveal flush door handles seamlessly integrated into the structured body panels to optimise aerodynamic efficiency.

At the rear, the Skoda Peaq echoes the front design language with matching T-shaped taillights and a unified connecting element, establishing a cohesive loop motif that serves as a distinct visual signature.

Karl Neuhold, Head of Exterior Design, Skoda Auto, said, “In designing the exterior of the Skoda Peaq, we consistently applied the Modern Solid design language, combining clean lines, balanced proportions and distinctive elements. Precisely sculpted surfaces and clearly structured details create a confident, timeless presence, while signature features such as the T-shaped headlights and Tech-Deck Face express Skoda’s identity in a new electric era.”