As the emission targets are getting tighter, efforts are made to improve the emission by all possible means. This work emphasis the potential of intercooler to reduce exhaust gas emissions (CO, HC, NOx and PM). A detailed analysis of experimental results on emissions is presented. The effect of intercooler efficiency on emissions is explained. A multi-utility vehicle equipped with common rail diesel engine was tested in NEDC cycle in chassis dynamometer. Ideally the vehicle emission lab should replicate a flat straight road condition & natural airflow. To obtain the airflow a variable velocity fan is used. The velocity of air emerging from the fan and relative position of the fan with vehicle has a significant role in intercooler efficiency and hence on emissions. This work explains the exercise carried out to correlate the intercooler efficiency and exhaust emissions with fan position and velocity. Trials were conducted on road as well as on vehicle emission laboratory and the fan position and velocity was optimized based on best results.