New noise regulations, with reduced noise limits, have been proposed by UN-ECE. A new method which aims at representing urban driving of the vehicles more closely on roads is proposed and is considerably different from the existing one (IS 3028:1998). It is more complex; we also found that some of the low powered vehicles can not be tested as per this method. The paper proposes ways of improvement in the test method. The new noise reduction policy options will have a considerable impact on compliance of many categories of vehicles. Technological challenges, before the manufacturers, to meet all performance needs of the vehicle along with the cost of development will be critical to meet the new noise limits in the proposed time frame.