In the recent days most of the people possess their own vehicle globally. Protection of vehicle from theft, avoidaccidents, immediate message transfer and care if accidents takes place play an vital role in this era. Theft which is one of the undesirable practices happens everywhere. Theft happens mostly while parking and driving through insecure places. So protection of vehicle is a vital requirement of motorists from theft. In this project effort has been taken to develop automobile location based system using GSM. This system alerts by sending a short message (SMS) to the owner of the vehicle when the engine is turned on. Immediately, the owner sends the message to turn off the engine in order to prevent the vehicle from theft. The notification is done with the help of GSM MODEM. In addition to the theft control system, the system also sends an appropriate message if an accident occurs. Air Bag System integrated with automobile location based system is used to sense the release of air bags during accident. Immediately a message will be sent to the police/emergency ambulance service for speedy action. This system has been designed and developed in a simple cost effective for USD 80 in a reliable manner.