The automotive industry is set for a rapid transformation in the next few years in terms of communication. The kind of growth the automotive industry is poised for in fields of connected cars is both fascinating and alarming at the same time. The communication devices equipped to the cars and the data exchanges done between vehicles to vehicles are prone to a lot of cyber-related attacks. The signals that are sent using Vehicular Adhoc Network (VANET) between vehicles can be eavesdropped by the attackers and it may be used for various attacks such as the man in the middle attack, DOS attack, Sybil attack, etc. These attacks can be prevented using the Blockchain technology, where each transaction is logged in a decentralized immutable Blockchain ledger. This provides authenticity and integrity to the signals. But the use of Blockchain Platforms such as Ethereum has various drawbacks like scalability which makes it infeasible for connected car system. Here, we propose a solution to address various drawbacks of VANET such as privacy issues and, security using a more scalable decentralized platform called IOTA incorporated with a Public Key Infrastructure.