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The automotive industry (especially the LDV sector) is currently under unprecedented pressure from a wide range of factors particularly in terms of environmental performance and fuel consumption. Long-established test procedures are changing and standards are becoming much harder to meet, necessitating changes in R&D methods, strategies and calibrations, fuels and – crucially – powertrains. This presentation examines the current situation regarding regulation of emissions rules and the impact on powertrains used in new vehicles across the world. Powertrain technologies which can help to overcome challenges are mentioned and key trends are analysed. Finally, some brief comments are offered on what the next few years.