A new generation of vehicle radio frequency identification system based on short-range radio frequency communication technology. This system is a wireless identification system based on the principle of digital communication and using integrated single-chip narrowband UHF transceiver. The basic working principle and hardware design idea of the radio frequency identification system are described, and the flow chart of the program design scheme is given. From the perspective of low power consumption, efficient identification and practicality, the RFID tag suitable for vehicle is designed. Under the condition of complex road conditions (busy road), it can achieve effective recognition within 300m, and under the condition of sight distance, it can achieve effective recognition within 500m.