My guess is that this feature is utilized by one of two options (I searched the support site with no luck).
Option A, Bluetooth connection between vehicle & TomTom, although mainly for high-end vehicles &/or high-end sound systems, this would use bluetooth to communicate with the TomTom to advise that the headlights are on and to switch the device to Night mode.
Option B, the more likely option, the hard-wire connection utilizes the sound system's dimmer switch. Most sound systems will dim when headlights are activated. This may send a signal to the TomTom that the headlights are on and dimmer is activated which in turn will send it into night mode.
I can only assume but I believe Option B to be the best viable option.
Alternatively, you can also utilize the light sensor to determine day & night mode. That's what I have done since I don't feel like hardwiring TomTom to my sound system. You choose at what light level (ie 15% ambiant light) to switch to night mode and at which light level (ie 85% ambiant light) to switch to day mode.
Cheers,
--Phil