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With the upcoming regulations for fuel economy and emissions, there is a significant interest among vehicle OEMs and fleet managers in developing computational methodologies to help understand the influence and interactions of various key parameters on Fuel Economy and carbon dioxide emissions. The analysis of the vehicle as a complete system enables designers to understand the local and global effects of various technologies that can be employed for fuel economy and emission improvement. In addition, there is a particular interest in not only quantifying the benefit over standard duty-cycles but also for real world driving conditions. The present study investigates impact of exhaust heat recovery system (EHRS) on a typical 1.2L naturally aspirated gasoline engine passenger car representative of the India market.