Hello @rathi_tg.,
It looks like we are using different compiler versions and the lib that the S32DS complains about is from the GCC version 6.3 and not 4.9 the one that you have.
Now, the toolbox comes directly with the compiler, so the way in which you select which one to be used is by setting the system path variable that points to the compiler.
By default, the Model-Based Design Toolbox comes directly with the compiler and adds the path in the Matlab if the variable is not found declared in the Windows path variable. So in order to check which variable you have set, please type the following command in the Matlab environment. 
My result points to the compiler from the toolbox.
Now, if your result is the following,
| C:\NXP\S32DS_ARM_v2.2\S32DS\build_tools\gcc_v4.9\gcc-arm-none-eabi-4_9\ |
you have two options:
1. Either go to the Windows' System properties, Environment variables and update the GCC_S32K_TOOL variable value to the:
| C:\NXP\S32DS_ARM_v2.2\S32DS\build_tools\gcc_v6.3\gcc-6.3-arm32-eabi |
2. Either go to the Windows' System properties, Environment variables and delete the GCC_S32K_TOOL variable. And Matlab will use the compiler provided with our toolbox which is the same as the one from the S32DS_ARM_v2.2.
In both cases, you have to restart Matlab after changing the already defined GCC_S32K_TOOL variable path.
Hope this helps,
Marius