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In the Indian Context, Fuel Economy of a vehicle is one of key elements while buying a Car. The fuel economy declared by OEMs (Original Equipment Manufacturers) is one of the key indicators while assessing the fuel economy. However it is based on a standard driving cycle and evaluated under standard conditions as mandated by emission legislation. As the driving pattern has a major influence on fuel economy, the objective of this paper is to study real world driving patterns and to define a methodology to simulate a real world driving cycle. A case study was done on Delhi City, by running a fleet of vehicles in different traffic conditions. Thereafter data analysis like acceleration %, specific energy demand per distance, Acceleration vs. Vehicle Speed distribution etc. was done with the help of MATLAB. The final validation of cycle was done by comparing Lab results with on-road Fuel Economy data.