The automatic detection and recognition of car number plates has become an important application of artificial vision systems. Since the license plates can be replaced, stolen or simply tampered with, they are not the ultimate answer for vehicle identification. The objective is to develop a system whereby vehicle identification number (VIN) or vehicle chassis number is digitally photographed, and then identified electronically by segmenting the characters from the embossed VIN. In this paper we present a novel algorithm for vehicle chassis number identification based on optical character recognition (OCR) using artificial neural network. The algorithm is tested on over thousand vehicle images of different ambient illumination. While capturing these images, the VIN was kept in-focus, while the angle of view and the distance from the vehicle varied according to the experimental setup. These images were subjected to pre-processing which comprises of some standard image processing algorithms. The resultant images were then fed to the proposed OCR system. The OCR system is a three-layer artificial neural network (ANN) with topology 504-600-10. The major achievement of this work is the rate of correct identification, which is 95.49% with zero false identification.