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In vehicular communications, the use of IP-based vehicular networking is expected to enable the deployment of various road applications, namely for vehicle-to-infrastructure (V2I), infrastructure-to-vehicle (I2V), vehicle-to-vehicle (V2V), and vehicle-to-everything (V2X) communications. This paper surveys vehicular networking based solely on the Internet Protocol (IP), which is defined as IP Vehicular Networking, in smart road scenarios. This paper presents a background tutorial on IP-based networking, with an overview of the main technologies enabling IP vehicular networking, vehicular network architecture, vehicular address autoconfiguration, and vehicular mobility management. IP-based vehicular use cases for V2I, V2V, and V2X are presented and are analyzed based on the latest standardization and research activities. The paper highlights several research challenges and open issues that must be addressed by researchers, implementers and designers, and discusses security considerations that should be factored in for a secure and safe vehicular communication. Finally, this paper offers current and future directions of IP-based vehicular networking and applications for human-driving vehicles, partially autonomous vehicles, and autonomous vehicles in smart roads.