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Upgrading ordinary streetlights to smart streetlights to help monitor traffic flow is a low-cost and pragmatic option for cities. Fine-grained classification of vehicles in the sight of smart streetlights is essential for intelligent transportation and smart cities. In order to improve the classification accuracy of distant cars, we propose a reformed YOLOv3 (You Only Look Once, version 3) algorithm to realize the detection of various types of automobiles, such as SUVs, sedans, taxis, commercial vehicles, small commercial vehicles, vans, buses, trucks and pickup trucks. Based on the dataset UA-DETRAC-LITE, manually labeled data is added to improve the data balance. First, data optimization for the vehicle target is performed to improve the generalization ability and position regression loss function of the model. The experimental results show that, within the range of 67 m, and through scale optimization (i.e., by introducing multi-scale training and anchor clustering), the classification accuracies of trucks and pickup trucks are raised by 26.98% and 16.54%, respectively, and the overall accuracy is increased by 8%. Secondly, label smoothing and mixup optimization is also performed to improve the generalization ability of the model. Compared with the original YOLO algorithm, the accuracy of the proposed algorithm is improved by 16.01%. By combining the optimization of the position regression loss function of GIOU (Generalized Intersection Over Union), the overall system accuracy can reach 92.7%, which improves the performance by 21.28% compared with the original YOLOv3 algorithm. [ABSTRACT FROM AUTHOR]