New generation of automotive radars are currently in the development stage as the response to provide high quality driver assistance and forthcoming concept of autonomous driving. Due to rapid progress in silicon technology, a number of companies have developed automotive radars which uses Phase Shift Keying (PSK) signal in opposite to the most popular Frequency Modulated Continuous Waves (FMCW) signal. The theory and practice of PSK signals themselves and their applications in radar outside automotive has been reasonably well studied. In spite of fact that PSK radars are now adopted for automotive applications their performance in presence of Volume Distributed Clutter (VDC), e.g. rain, hail, snowfall, etc., which naturally occur in automotive scenario have not been properly investigated and publications on this topic to the best of the authors’ knowledge are absent. In this thesis a simplified model of the VDC is developed. It is shown that sidelobes level of the signal Ambiguity Function (AF) essentially affects the performance and the appropriate codes shall be selected taking into account potential presence of VDC. The methodology of the system performance evaluation is proposed accompanied with practical examples.