This research is an effort to develop a low power and cost efficient VRS (Vehicle Recognition System) using short-range wireless technologies. VRS is a system in which the image of the vehicle is captured using High Definition cameras installed at the road. The image is used to detect the vehicle type (car, van, bus, truck, and bike etc.), its color (white, black, blue etc.), its name/model (Toyota Corolla, Honda Civic etc.) and then this image is processed using segmentation and OCR techniques to get the vehicle registration no. in the form of characters.