Accurate vehicle location is essential for various applications in the field of intelligent transportation systems (ITS). Existing vehicle location systems rely on multiple positioning sensors and powerful computing devices to execute complex map matching algorithms. There exists a strong need for exploring a solution for vehicle location that relies on a GPS receiver as the sole means of positioning and does not require complex computations. Towards this end, the error characteristics of the GPS signal were studied through the analysis of GPS data collected during test drives. Based on the inferences drawn and a simple fuzzy rule set, a novel yet simple map matching algorithm was developed. Due to the difficulties in testing the algorithm through on-road trials, a simulation environment that is capable of reproducing the field conditions in the laboratory was developed. Simulation results confirm that the proposed algorithm overcomes many of the inadequacies of the existing methods and is capable of achieving high accuracy with minimal computational requirements.