Today's high resolution, high frame rate cameras in autonomous vehicles generate a large volume of data that needs to be transferred and processed by a downstream processor or machine learning (ML) accelerator to enable intelligent computing tasks, such as multi-object detection and tracking. The massive amount of data transfer incurs significant energy, latency, and bandwidth bottlenecks, which hinders real-time processing. To mitigate this problem, we propose an algorithm-hardware co-design framework called Processing-in-Pixel-in-Memory-based object Detection and Tracking (P2M-DeTrack). P2M-DeTrack is based on a custom faster R-CNN-based model that is distributed partly inside the pixel array (front-end) and partly in a separate FPGA/ASIC (back-end). The proposed front-end in-pixel processing down-samples the input feature maps significantly with judiciously optimized strided convolution and pooling. Compared to a conventional baseline design that transfers frames of RGB pixels to the back-end, the resulting P2M-DeTrack designs reduce the data bandwidth between sensor and back-end by up to 24x. The designs also reduce the sensor and total energy (obtained from in-house circuit simulations at Globalfoundries 22nm technology node) per frame by 5.7x and 1.14x, respectively. Lastly, they reduce the sensing and total frame latency by an estimated 1.7x and 3x, respectively. We evaluate our approach on the multi-object object detection (tracking) task of the large-scale BDD100K dataset and observe only a 0.5% reduction in the mean average precision (0.8% reduction in the identification F1 score) compared to the state-of-the-art.