PEPS (Passive Entry and Passive Start) system is gradually becoming a main stream option in automotive keyless entry application, which improves the convenience and vehicle anti-theft performance. Based on the complex functions and safety technical requirements of the PEPS controller, and due to the development method of the model-based system design widely used in the automotive electronics industry, this paper presents a model-based on the development of PEPS controller method, which introduces the process of modeling and automatic code generation for the PEPS controller. Through Simulink/Stateflow of PEPS controller using logic system modeling, the PEPS controller complex system functions are divided into different function layers with each functional layer modeling respectively, and implement logic function design by the graphical language. Based on the model, it describes the process of model debugging and validation, the coverage analysis of the model, MIL (Model In the Loop) testing and SIL (Software In the Loop) testing. Based on the automatic code generation tool called TargetLink software supplied by dSPACE Company and called Simulink/Embedded Coder supplied by MathWorks Company, automatic generated production code of the PEPS controller is achieved. This paper also describes the comparison of the process of generating C-code by Embedded Coder and TargetLink. In the case of ensuring the quality of the code generation, the model-based design method also contributes a lot to improve work efficiency, shorten the development cycle, reduce development costs, and enhance the quality and security of product.