In this paper, a technique is presented for developing a composite system with single walled carbon nanotubes (SWNT) and natural rubber. Considerable growth has been seen in the use of bio-composites over the past decades. The dispersion of nanotubes in natural rubber has been investigated as a means of deriving new and advanced engineering materials namely bio-composites. This experimental investigation results establish the importance of composites in automobile industry. Carbon nanotubes are promising new materials for blending with polymers and having potential to obtain low weight nano composites of extraordinary mechanical, electrical, thermal and multifunctional properties. The size scale, aspect ratio and properties of nanotubes provide advantages in a variety of applications including advanced materials with combined stiffness, strength and impact for aerospace or sporting goods. Our objective is to develop a composite using carbon nanotubes and natural rubber, analyse the morphology and thermal stability using Atomic force microscopy, Thermogravimetry and to check the feasibility of using them in automobiles.