The increasing in popularity of Light Commercial Vehicles (LCV) segment is an emerging trend in the commercial vehicle industry. LCVs are very efficient and cost-effective for transportation of materials and good on short distances or loads of smaller weights. Sensing the market potential, many auto companies have launched LCVs recently. Since LCV segment is very price sensitive, low cost single cylinder air cooled diesel engine being used as prime mover. High noise & vibration is inherent feature of diesel engine & it is predominant in single cylinder diesel engine. In order to maintain low cost of product, less attention is given on overall noise of vehicle. To meeting the regulatory limits of Pass-by Noise (PBN) for this category of vehicle is also a challenge. This paper is a development work done for pass-by noise reduction of a diesel powered single cylinder SCV vehicle. A prototype vehicle needs to meet the legislative pass-by noise requirement when tested as per IS0 362. Initial Pass-by noise test of the proto vehicle clearly indicates to reduce the Pass-by noise by 2-3 dBA which demands to carry out the Noise Source Identification during Pass-by noise test. Pass-by Noise Source Identification resulted with various sources contributing to increase in Noise levels. Development iterations were conducted on the vehicle to achieve the well significant Pass-by noise reduction.