Metal matrix composites with aluminum as base metal are extensively used in the important engineering industries, their properties can be improved for many important requirements. In current work it is tried to make the process cost effective. The efforts are made to make less expensive composites with improved properties. In this work a attempt is made to fabricate Aluminum LM25 based Metal Matrix Composite with the aim of developing a low cost conventional method for manufacturing of Metal Matrix Composites. The different combinations for LM25-Fe₃O₄ are made and their mechanical properties are tested and studied on alloy wheel with Ansys software. Experiments done for various combinations for LM25 and Fe₃O₄ as reinforce material (2.5%, 5% and 7.5% by weight) then examined for important mechanical properties. The present work also shows Ansys analysis on the alloy wheel of car with all new combinations of LM25 and Fe₃O₄ and to predict effect of loading. The effect of change in combination is also shown on alloy wheel of an automobile with Ansys software.