The new generation vehicle will provide connectivity and telematics services for enabling vehicle communication. The communication over IP in TCP/IP (Transmission Control Protocol /Internet Protocol), means enables a connection between external node and in-vehicle nodes using IP protocols. In order to bring IP into the vehicle communication Ethernet technology is needed. Ethernet technology will provide high speed data transmission. A hardware independent Ethernet driver is necessary for providing Ethernet services. In vehicle diagnostics, the diagnostic tools and vehicles are separated by an internetwork. The main aim of using IP into the family of automotive communication protocol is that the development of new in-vehicle network has led to the need for communication between external equipment and onboard Electronic Control Units (ECUs) using many data link layer technologies. Diagnostic over IP (DoIP) is a protocol mainly used for communication between off-board and on-board diagnostic system.