The use of AGVs(Automated Guided Vehicles) are increasing in many factories. The most widely used AGV system is that magnetic tapes are attached on the factory floor to make guided path and an AGV equipped with a magnetic sensor follows the path by sensing magnetic flux. In this AGV system, usually a magnetic sensor is attached on the front end of an AGV to detect the guided path and the sensor generates analog voltages proportional to the magnetic flux. The problem is that the AGV in use has rather big tracking errors because the accurate orientation of the AGV can not be detected by using only one magnetic sensor. In this paper, we propose a method to minimize the path tracking errors. In our method, one additional sensor is attached on the rear end of the AGV to estimate the orientation of the AGV and to control more accurately the AGV according to the estimated orientation of the AGV. We performed several experiments and the results successfully show the feasibility of the proposed method.