Today, LED automotive exterior lighting is already widely used on high end and upper middle class vehicles. We see already first examples of application as the standard lighting solution even in the mid class segment. A compact design and the feasibility of car life sealed solution is a strong argument to use LEDs for CHMSLs. Long lifetime and new styling opportunities speak for LEDS in front or rear position lights as well as in daytime running lamps;.Mainstream penetration of LED lighting solutions will first happen for functions where the benefits of LEDs have the highest positive impact and where this value can be realized in the most cost-effective way. During the different phases of the introduction of LEDs different requirements dominate the decision process. Providing unique styling opportunity and showing advanced technical functionality is leading for the early adopters. Demonstrating superior energy efficiency can also be a strong motivation for functions where this is clearly understood by the end customer. LEDs underpin the green image of the car. In the market penetration phase, quality and long term reliability and life time become more and more important. For the third phase, the mass adoption, long term supportability, system cost reduction and the reduction in the complexity of the supply chain get into the focus. We will evaluate how specific aspects of LED source technology can be translated into benefits for system performance and reduction in system cost while maintaining the required system performance and enabling new value adding features.