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All-Terrain Vehicle is an off-road vehicle which can withstand harsh terrains. The steering system, transmission system, and brakes are one of the integral parts of the buggy which is responsible for providing directional stability and power transmission, respectively. This paper focuses on the weight optimization and performance enhancement of the buggy by making alterations in the steering and transmission system of the vehicle. In the steering system, alternate material was used and in the transmission system, forward and reverse gearbox was replaced with continuously variable transmission and chain sprocket arrangement. A mathematical model was developed and compared with the result obtained from ADAMS/CAR. The decisions were made keeping in mind the safety, drivability, reliability, maneuverability, manufacturability, and performance aspects of the vehicle.