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Rapidly changing emission and fuel efficiency regulations are pushing the design optimization boundaries further in the Indian car market which is already a very cost conscious. Fuel economy can be improved by reducing moving parts friction and weight optimization. Driveline or Transmission power losses are major factor in overall efficiency of rotating parts in a vehicle. Transmission efficiency can be improved by using low viscosity oil, reducing oil quantity and reducing churning losses in car transmission. Changes like low viscosity and reduced oil volume give rise to challenges like compromised lubrication and durability of rotating parts. This further leads to extended design cycles for launching new cars with better transmission efficiency and fuel economy into the market. Design cycle time can be reduced by using CFD simulation for oil flow validation in the early design stage.