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Vehicle target setting is an evolving process based on continually changing internal (management, standards) and external (competitive and legal) requirements. In addition to evolving requirements, the process for establishing and documenting targets may not be clear. The objective of this paper is to detail the overall process of target setting, the critical factors to consider, and key definitions for each stage of the process. It will describe the complete process from early competitive benchmarking to final verification testing. Setting targets for a vehicle requires definition and thorough benchmarking of the competition, an understanding of the key attributes used to describe the vehicles' performance, and a clearly defined set of requirements. These requirements will be regulatory, corporate and competitively based and grouped by clearly defined, customer perceived attributes which can be cascaded to specific vehicle systems.