An effective communication among the road users is crucial for safety precautions. Nowadays, a light emitting diode (LED) are commonly installed on a motor vehicle as the lighting system. The LED lights are more reliable and flexible in terms of the design and power adjustments. To further utilize the LED applications in a vehicular system, a simple data transmission system based on LED lights for short distance is developed. Toy vehicles are used to demonstrate the functionality of the system. This paper explains the components used and the communication protocols of A and B that have been developed and tested. The implementations of a software-based modulation and communication protocols by using a microcontroller can be considered as the initial approach that can be further enhanced for future development. In this paper, the prototype of the system as well as the experimental results are presented. The prototypes are able to send short messages by using the LED and photodetector (PD) which could reach up to 2-meter distance. In addition, it is also believed that this project can be implemented on the real motor vehicles subject to a few improvements.