The short answer is: Yes, but not in the way a GPS tracker does.
Technically, an RFID chip is a "proximity tracker," not a "global tracker." Understanding the difference is key to knowing your privacy risks.
1. The "Range" Reality
Unlike your phone or a dedicated GPS unit, a standard passive RFID chip (like the ones in your tire or on your windshield) does not have a battery or a satellite connection.
Passive RFID: Only works when it is very close to a reader. For a windshield or tire tag, this is typically 5 to 10 meters. You can only be "tracked" when you pass through a specific "choke point" equipped with a reader (like a toll gantry, a parking entrance, or a smart traffic light).
Active RFID: These have batteries and can be read from up to 100 meters (or more with specialized equipment). These are rarer in consumer cars but common in high-end fleet management.
2. How Tracking Actually Happens
Since RFID doesn't "broadcast" your location to space, tracking is done by connecting the dots:
Checkpoint Tracking: If you pass through Toll Gate A at 10:00 AM and Toll Gate B at 10:30 AM, the system knows exactly where you were at those two moments and can calculate your average speed.
Retail/Inventory Tracking: In a "Smart City" scenario, readers hidden in streetlights or store entrances could log your tag ID as you walk or drive by, creating a digital "breadcrumb trail" of your movements through a specific area.
3. Privacy Concerns: The "Unique Identifier"
The real tracking risk isn't the radio wave-it's the Unique ID (UID).
Every RFID tag has a one-of-a-kind number. Even if the tag doesn't contain your name or address, anyone with a high-powered reader can see that "Tag #45A9" just passed by.
If that ID is linked to your identity in a database (like a government vehicle registry or a store's loyalty program), your movements become personally identifiable.
4. Comparison: RFID vs. GPS
| Feature | RFID (Passive) | GPS |
| Power Source | None (powered by reader) | Vehicle Battery / Internal Battery |
| Tracking Method | Proximity to a Reader | Satellite Triangulation |
| Coverage | Only at checkpoints | Global (Outdoor) |
| Real-Time? | Only when passing a reader | Constant, second-by-second |

How to Protect Your Privacy
RFID Blocking: For cards or fobs, "RFID-blocking" wallets or sleeves act as a Faraday Cage, preventing readers from waking up the chip.
Physical Removal: If you sell your car, always remove or deactivate the windshield tag so your identity isn't physically attached to the vehicle's new movements.
Encryption: Modern high-security tags (like those in passports) use encryption so that even if a reader "wakes up" the chip, it can't read the data without a digital key.