Demand of hybrid vehicle increases more and more due to raise in fossils fuel prices. Automotive OEM’s of worldwide invest their potential in developing automobiles with higher fuel efficiency, light weight, comfortable and low cost as possible without negotiation in quality and safety. Air conditioner systems in buses utilizes 30% of power from engines for functioning of its components which increases the fuel consumption and decreases effective performance.In this project, Organic phase change material (PCM) paraffin 14-carbon with blend of 1.0 %wt of copper oxide (CuO)/titanium oxide (TiO2) nanoparticles dispersed fluid is used to store cooling energy in form of latent thermal heat. This composite material is filled in Aluminium shell of thickness 3mm and fixed in direct contact with refrigerant cycle. The newly developed PCM sample is subjected to differential scanning calorimetry (DSC) in order to determine phase change temperature and latent heats. Thermal diffusivity analyser in used to predict thermal conductivity enhancement of composite PCM mixture. Fourier transform infrared (FT-IR) analysis is done to justify chemical reliability of the composite material. Thermal stability of PCM is determined with results obtained from Thermo-Gravimetry (TG) and Differential Temperature Analysis (DTA). Temperature distribution in Aluminium shell is determined by FEA methodology by applying boundary conditions with help of commercial software.From the above results it is evaluated that innovative composite PCM will be safe and environmentally friendly. This PCM will perform in effective manner during engine in start/stop condition and decrease the power consumed by conventional AC system.