The invention discloses automobile steel with high toughness and high product of strength and elongation and a preparation method thereof, and belongs to the technical field of preparation of automobile steel with high toughness and high product of strength and elongation. The steel comprises, by weight, 0.15%-0.60% of C, 0%-2.0% of Si, 0%-2.0% of Ni, 3.0-6.0% of Mn, 2.0-6.0% of Al, and the balance of Fe and inevitable impurity elements. On this basis, one or more of the following microalloying elements can be added: by weight, 0-0.10% of Nb, 0-0.10% of V, 0-0.10% of Ti, 0-0.10% of Mo, 0-0.50%of Cu, and 0.0005-0.005% of B. The automobile steel and the preparation method have the advantages that a multi-phase, multi-layer and metastable microstructure is formed through alloying of C, Mn, Al and the like and rolling and annealing of a two-phase region; at -40 DEG C, the V-type impact toughness is not smaller than 120 J, the product of strength and elongation is not lower than 50 GPa%, the cost is far lower than that of traditional high manganese steel, the comprehensive mechanical property is far higher than that of medium manganese steel, and low cost and high performance are achieved. The automobile steel can be applied to the field of white automobile body and transmission part manufacturing in the form of bars or plates.