This paper describes the strategies used in optimization of an existing three-wheeler Liquefied Petroleum Gas (LPG) vehicle variant for improving its fuel consumption, basic performance and meeting BS-III emission norms.The major technical areas targeted were i)Redesigning of the gear ratios so that the vehicle predominantly runs in low rpm band i.e. between Peak torque and Peak power which is best SFC (Specific Fuel Consumption) region.ii)Optimization of intake system for LPG fuel which involves different combinations of air reducers and mixer ventury throat diameters with varying hole sizes and numbers.iii)Improving LPG kit from that used in the existing model to a modified one better suited for the smaller displacement engine on the vehicle.After rigorous work on the chassis dynamometer and various trials on road the optimized vehicle managed to deliver a 20% plus improvement in fuel consumption helping close the gap considerably to competitors. Fuel consumption varied from 24 - 26 based on different traffic conditions in different cities in India and different driver habits. The power and torques also increased by 10%. Vehicle also passed BS-III emission norms more comfortably than existing model in tests conducted at certified test agency.