A tire is one of the most important performance and safety components in a two wheeler. An incorrect tire pressure not only impacts overall performance of a vehicle but also safety and overall fuel economy. The main purpose for appropriate tire pressure is to uniformly distribute vehicle load across the tire contact patch thereby providing an optimal contact between tire and road, effective handling, passenger comfort, maximum tire life and overall vehicle safety. A Tire Pressure Monitoring System (TPMS) measures a range of air pressure and alerts for proper tire pressure maintenance.Currently fully fledged tire pressure sensing systems are used in passenger cars and commercial vehicles. The use of such system in a two wheeler is yet to be recognized as precondition instead of an added attribute.This paper presents an objective methodology, based on analytical simulation and testing, developed in order to derive the optimal condition for front and rear tire pressures to achieve best performance in ride comfort, handling, braking and fuel economy. All findings justify the importance of TPMS, which ensures maintaining appropriate tire pressures for maximizing performance without substantial, high cost changes to the basic vehicle design.