AZ91E, a magnesium alloy, shows promise in vehicle technology with its lightweight properties and potential for hybrid metal matrix composites. This study focuses on investigating compression properties using statistical analysis and finite element method simulations. However, experimental measurements reveal a density decrease compared to theoretical values, impacting weight optimization and structural integrity in vehicles. Incorporating strengthening agents like ZrO2 and fly ash enhances mechanical properties, though fracture toughness reduces due to grain refinement. Overall, this research provides valuable insights for integrating AZ91E-based composites in the automotive industry to achieve weight reduction and improved performance. As vehicles aim for lighter materials to improve fuel efficiency and reduce emissions, magnesium alloys have emerged as promising candidates for various components. AZ91E, composed mainly of magnesium (Mg), along with aluminum (Al) and zinc (Zn) as primary alloying elements, offers excellent lightweight characteristics. However, the experimental measurements in this study revealed a decrease in density compared to theoretical values, which may have implications for vehicle weight optimization and structural integrity. Decreasing deformation height reduced compressive strength for (H/D = 1 and 1.5) of AZ91E and composites, but composites showed higher compressive strength despite slightly higher density, indicating their superior performance. Analytical equations and ANSYS software provided closely matched results for axial, compressive and hydrostatic stress, while the strength coefficient and the exponent of strain hardening revealed plastic behavior of the samples. Incorporation of FA particles improved the ultimate yield and tensile strengths, as well as the tensile characteristics and hardness with underlying processes for strengthening were discussed. The investigation of AZ91E-ZrO2-fly ash hybrid metal matrix offers valuable insights into potential applications of magnesium alloys in the automotive industry. Understanding the compression attributes and mechanical behavior of these composites, its crucial for their successful integration into vehicle components, where weight reduction and improved performance are essential goals. © 2023. Carbon Magics Ltd.