This project disclosure covers novel based design of autonomous guided vehicle (agv) with servo steering control mechanism as shown in fig 1-13. the autonomous guided vehicle is the emerging field of research, where they evolve future transportation will based on autonomous cars and vehicles ( lidar, gps, gsm, etc). this project proposes to the better performance of design and analysis of autonomous guided vehicle that includes the rack and pinion steering system to get slip free movement in its path by implementing the ackermann steering geometry, and also the requirements of the hardware for this grounded vehicle is modeled, analyzed and fabricated. the arduino uno based controller is used to achieve the desired operation of the four wheeled guided vehicle to avoid obstacle by controlling steering mechanism system. the ultrasonic sensor is used to detect the obstacle. in this work, the steering angles with respect to the obstacle distance are acquired to actuate the driving motor and servo motor to control the vehicle motion.