Aluminium alloys are widely used in aerospace and automobiles industries due to their low density, corrosion resistance, low thermal coefficient of expansion as compared to conventional metals but its low strength and low melting point were always a problem. An effective method of solving these problems is to use a reinforced element as Al2O3 particles. The high-strength, low density aluminium alloy-based composites with alumina reinforcement have generated significant interest in the industries where strength to weight ratio is the primary concern. Present work is to study the behaviour of pure aluminium powder reinforced with Al2O3 which is produced by the powder metallurgy technique by varying the percentages of alumina by weight. The fabricated composite samples were trimmed according to the ASTM standards for different experiments and its characterization is performed. Finally the research work deals with fabrication of Al/Al2O3 composite for automotive applications to replace the existing aluminium alloys