A vehicle tracking system is an electronic device installed in a vehicle to enable the owner or a third party to track the vehicle's location. This paper proposed to design a vehicle tracking system that works using GPS and GSM technology, which would be the cheapest source of vehicle tracking and it would work as anti-theft system. It is an embedded system which is used for tracking and positioning of any vehicle by using Global Positioning System (GPS) and Global system for mobile communication (GSM). This design will continuously monitor a moving Vehicle and report the status of the Vehicle on demand. For doing so an AT89C51 microcontroller is interfaced serially to a GSM Modem and
GPS Receiver. A GSM modem is used to send the position (Latitude and Longitude) of the vehicle from a remote place.
The GPS modem will continuously give the data i.e. the latitude and longitude indicating the position of the vehicle. The
same data is sent to the mobile at the other end from where the position of the vehicle is demanded. When the request by
user is sent to the number at the GSM modem, the system automatically sends a return reply to that mobile indicating the position of the vehicle in terms of latitude and longitude in real time.