As far as I know the Panda does not use a projector headlights and using LEDs are both illegal and dazzles other drivers. But I could be wrong
Any headlight which dazzles is illegal though to be fair an extremely bright light is even worse.
HID bulbs (burners) do not have a point light source like a filament bulb so they usually need a special reflector. However, I used HID burners in the bike with no problems and while technically illegal they always passed the MOT and I never got flashed for dazzling other drivers. They were good quality HID-50 brand.
IMO being able to see down the road is more important than the light source technology I use to get the job done. The issue is that whatever light source is used it must be compatible with the lens and reflector.
When the dip beam burner failed I swapped back to halogen bulbs while I sorted out replacement parts. The light was stunningly bad taking me back (almost) to the days of Lucas sealed beam units. It was so bad in rain that I nearly hit a lay-by kerb while exiting a dual carriageway. Frightening to say the least.
The bike was supplied new with auxiliary headlight pods that gave a dip beam pattern. Without them the single headlights was frankly dangerous, though perfectly legal. Main beam was pointless because the puny single halogen could not compete with three 50W halogens filling the foreground. My auxiliaries had long since been replaced with long range spots to support the poor main beam.
I found the LED bulbs for less money than replacement HID burners so took a punt. They actually give a better beam because the bright spot is smaller and they might be more powerful than the HID. The dip beam cut-off is sharp and main beam throws light forwards without scatter.
The H7 LED dip beam in the bike gives more light than both halogens in the car from a smaller lamp unit but it is well focussed and not dazzling.
The Panda headlight uses a reflex reflector cap which hides the bulb. You "could" put what you like in there and nobody would know. It must of course work properly with the reflector design so cheap tat wont work. Dazzling others is not only dangerous but its also pointless. Scattered light won't help its user to see where s/he is going. On the up side, LEDs deliver much more light with much less power. The headlight internals do not suffer heat from the bulb but they do need to allow the rear mounted heat sink to cool adequately.
