A system and method for locating a moving object in an indoor environment is disclosed. The system for location tracking includes a sensor assembly, a microprocessor, and a transmission unit mounted under a bot (object) or vehicle to be tracked. The sensor assembly include color sensors, speed sensor and direction sensor. Further, sensor data is collected from the plurality of sensors and processed according to a predetermined formula to determine location co-ordinates of the vehicle. The system provides lower error rates by providing a plurality of reference points. The system for tracking vehicles in motion is applicable in a closed area emboss able with a predetermined pattern.