The air pollution is increasing at an alarming rate now a day mainly due to emissions coming out of automotive vehicles. The exhaust emissions gases are hazardous to human health. The increased number of vehicles on road will make the scenario even worse. In order to control the pollution level, the regulatory bodies are now implementing stringent emission norms. In India, the regulatory authorities has framed the transition of BS IV to BS VI emission norms in 2020 by skipping the BS V emission norms which makes the automotive industries to work on more advanced fuel management technologies. It is more tedious to control the tail pipe emissions beyond BS IV emission norms with the conventional carburetor system since it is operating on open loop system. It is evident that in order to meet the stringent emission norms we need to have a closed loop system which controls the Air Fuel Ratio (AFR) close to stoichiometric to increase the conversion efficiency of the catalytic converter. The vehicle with fuel injection system can able to work on closed loop system, but the fuel injection system is not cost effective.This paper illustrates the development of a cost effective smart engine management system for two wheeler application to meet the upcoming emission norms with some modification from the conventional carburetor system. Instead of controlling the fuel flow to keep the AFR close to the stoichiometric as in fuel injection system, the smart engine management system has a sophisticated air control mechanism to make the AFR close to stoichiometric. The carburetor was modified to incorporate an air control solenoid which is operated on the pulse width modulation to vary the air flow according to our requirement. The lambda sensor measures the AFR from the exhaust pipe and provides information to the ECU.Based on the feedback from the lambda sensor, TPS, CPS, etc., the ECU maintains the AFR stoichiometric by controlling the flow through the air control solenoid with varying duty cycles. The vehicle performance test was carried out with vehicle having smart engine management system (Electronic carburetor) and also with fuel injection equipped vehicle on the chassis dynamometer. The test results show that the air fuel ratio of the electronic carburetor vehicle was maintained close to stoichiometric as in fuel injection vehicle which in turn reduce the emission to a considerable extent. Hence the smart engine management system caters a new way for an efficient low cost fuel management system.