The growth in computational fluid dynamics has brought about a rapid increase in the study of vehicle aerodynamics aiding to meet the stringent fuel economy and pollution laws. Though there has been a lot of research in the segment of sedans and sports vehicles, there has been considerably less amount of research on the hatchback segment of vehicles. This paper aims at a study in the computational fluid dynamic simulations of a widely used passenger hatchback vehicle and a proposed model to obtain the reduced coefficient of drag value for the proposed model based on the initial widely used model and to understand the effect of the shape of a vehicle on the drag value of the vehicle. The widely used hatchback passenger vehicle (initial model) is designed based on a body, similar to that of a typical hatchback model widely sold in the Indian market. The drawbacks of the initial model are obtained via the CFD simulations and the proposed model is designed to overcome those drawbacks and offer minimal resistance to air thereby reducing the Coefficient of Drag value.