A vehicle tracker (102) and a method for monitoring vehicle's activity are described. The vehicle tracker (102) has a connection port (216) which provides plug and play functionality. The vehicle tracker (102) further has a plurality of sensors (504) for sensing various parameters associated with the vehicle. The sensing results in generation of current parameter values (518) which are processed in relative to plurality of parameter threshold values (520). The parameter threshold values (520) define minimum and maximum range of the parameters. Based on the processing, the vehicle tracker (102) determines anomalies in the operation of the vehicle. Once the anomaly is detected, the vehicle tracker (102) generates an alert and sends it to the concerned person or user.