How to make vehicles more safe and agile? This is a big question now a days and the answer is being provided by the successful implementation of Intelligent Transportation Systems and Artificial Intelligence. Technology gadgets such as GPS, satellite tracking, remote sensing and sensor networks are playing a vital role in the success of ITS and making road journey more safe and secure. These gadgets altogether provide dynamic route scheduling, weather and traffic conditions. Intelligent transportation system can simply guide about the route and traffic or can do much more, like, telling in advance about the coming signal and its status, also suggesting you how to avoid stopping at the signal. It can also tell about a speedy vehicle coming from the other direction and can tell you to reduce or enhance speed to avoid a possible collision. This need has focused on the inter-vehicle communication directly to speed up the decision-making process through fast data transmission using dedicated short range communication and AODV routing scheme.