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In-use compliance under LEV III emission standards, GHG, and fuel economy targets beyond 2025 poses a great opportunity for all ICE-based propulsion systems, especially for light-duty diesel powertrain and aftertreatment enhancement. Though diesel powertrains feature excellent fuel-efficiency, robust and complete emissions controls covering any possible operational profiles and duty cycles has always been a challenge. Significant dependency on aftertreatment calibration and configuration has become a norm. With the onset of hybridization and downsizing, small steps of improvement in system stability have shown a promising avenue for enhancing fuel economy while continuously improving emissions robustness. In this paper, a study of current key technologies and associated emissions robustness will be discussed followed by engine and aftertreatment performance target derivations for LEV III compliant powertrains.