An auto-rickshaw, also known as a three-wheeler, is a common form of public transportation in many countries around the world. It is usually a three-wheeled cabin cycle for private use, and as a vehicle for hire. The vehicle is a motorized version of the traditional pulled rickshaw or cycle rickshaw. The Chassis is considered to be one of the significant structures of an automotive engineering usually made of a steel frame which holds the body and motor of an automotive vehicle. It is subjected to various loads like static loads, inertia loads, loads due to braking and acceleration, etc. This work aims to optimize the three wheeler chassis to achieve weight and cost reduction by performing stress analysis. The material used for the structure is cold rolled steel IS513 having yield strength of 250 MPa. The Creo/ProE and Hyper works play major role for modelling & analysis of chassis respectively. The optimization of the chassis shown the stress and displacement plots and it is limited to the front part, the rear part of the chassis keeping the same as parameters. The computed results for optimized chassis are then compared with the existing chassis where it is found that the optimized chassis is safe.