Sustainable transportation is crucial in addressing global road safety and environmental challenges. This study introduces a novel photonic radar system, leveraging Linear Frequency-Modulated Continuous Wave (LFMCW) technology for high-speed data transmission. Operating in a homodyne configuration, this system uses a single oscillator to generate both signal and reference waveforms. It incorporates mode division multiplexing (MDM) to enable the detection and ranging of multiple targets, even under adverse atmospheric conditions. To counter atmospheric attenuation, the system is equipped with a 2 × 2 MIMO technique and an Infinite Impulse Response (IIR) filter. Numerical simulations demonstrate the system’s superior performance in range resolution and target detection, achieving significant power improvements. The IIR filter further enhances detection, achieving a power improvement of 200% for target 1 and 276% for target 2. With low power requirements and enhancement through IIR filter equalization, this system presents a viable option for battery-operated vehicles. This innovative approach offers a low-power high-efficiency solution suitable for battery-operated vehicles, promoting safer and more reliable sustainable transportation.