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Three-wheeler is a popular mode of transport in developing nations. Customers demand higher fuel economy from the vehicles to keep the operating costs to a minimum. Competitive environment of automobile market demands for new improved products with minimum development time. Computer simulations are very useful in reducing the development time through virtual prototyping and testing the system on computers rather than making the physical prototypes and testing on road. Particularly, lumped parameter modeling provides reasonably accurate results for predicting vehicle performance characteristics in short span of time. This is very useful when various system level targets have to be achieved and when trade-offs have to be made to obtain optimal results. This paper focuses on the development of a three-wheeler with LPG fuelled engine to achieve target performance using simulation tools.