The invention discloses a high-strength corrosion-resistant magnesium alloy composite material for an automobile hub, and a preparation method thereof. From composition, the composite material comprises a matrix and a surface coating of the matrix, wherein the matrix is a magnesium alloy, and comprises the following components in percentage by weight: 1-5% of Zn, 4-12% of Al, 6-15% of Y, 10-30% of TaC particles and the balance Mg. The surface coating is a ZrO2 coating formed in a manner of ion implantation deposition. The material achieves the effects of precipitation strengthening and aging hardening through the synergistic effect of the alloy elements Zn, Al and Y as well as the TaC particles, intermetallic compounds Mg-Zn-(Y) and Mg-Al-(Y) in the matrix, and the discrete TaC particles generate pinning for dislocations in a deformation process, so that the mechanical property of the magnesium alloy composite material is improved; and meanwhile, the ZrO2 coating prepared by virtue of the ion implantation deposition has a gradient structure, so that the bonding strength between the coating and the matrix, and the corrosion resistance of the matrix are remarkably improved.