Automated guided vehicles (AGVs) are widely used for material handling in industry. AGV designs and capabilities vary depending on the complexity of required tasks, the environment and the level of autonomy. As the AGV market is highly competitive, the designer was required to provide a low-cost solution that does not compromise on functionality. An automated guided cart (AGC) is one type of AGV that provides material handling capability with a low level of control and complexity.This research looks at the development of an AGC for use in assembly lines as requested by a local automotive manufacturer. In particular, this paper focuses on the navigation and locomotion aspects of the AGC, but includes discussion of safety and SCADA related topics. A line-following based method of navigation was implemented making use of a magnetic tape and sensor array. The project is based around a commercial PLC which manages the movement and communication of the AGC. The AGC was tested in a working environment and proved to be capable of material handling tasks as defined by the automotive manufacturer.