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Congestion problem and packet delivery related issues in the vehicular ad hoc network environment is a wide issue for research in recent years. The design of efficient network protocol is a major challenge in vehicular ad hoc network which utilizes the value of GPS and other parameters associated with the vehicles. In this paper, Greedy perimeter stateless routing protocol(GPSR) is improved by drawing a virtual line and by considering perpendicular distance of one hop neighboring node of source over that virtual line and comparing them to obtain next forwarding node. This algorithm is compared with the existing improvements in GPSR protocol for congestion and routing on the basis of various performance parameters like throughput of the network, end to end delay, routing overhead and packet loss ratio. The results also validate the performance of the proposed approach.