This paper investigates the application of interference alignment (IA) to inter-vehicle communications for further performance improvement. In conventional IA in the spatial domain, the number of antennas of each terminal limits the number of terminals, and therefore the sum rate performance is upper-bounded. This paper shows that when IA is applied to inter-vehicle communications at an intersection, it is possible to exceed the sum rate of the conventional IA by taking into account the effect of path loss. To this end, we consider multiple-input multiple-output interference channels with two IA groups, where all interference signals from the same group are aligned at each receiver by virtue of IA, but interference signals from the other group are not. Simulation results show that two IA groups can geographically co-exist by utilizing high propagation loss at a corner of the intersection to mitigate inter-group interference, and thus the achievable sum rate can be significantly improved, compared with that of single- group IA.