do we need to insert a SIM(cellular/GSM) to a vehicle GPS if we want to track the location from the distance? (over the internet)

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It would depend upon the GPS device that you have. Some may support installation of a SIM, others a USB cellular modem, and others perhaps neither. In any case, if your GPS device does not support some variety of external communication service, you are SOL.

It is not necessary to use a sim for GPS navigation......

I think a sim is used if you are using a gsm phone as the signal device for the gps otherwise other signal devices can also be used without a sim, example a small satellite dish.

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