The invention discloses an aluminium alloy conductor for automotive wires, which has the advantages of high heat resistance, conductivity, tensile strength, extensibility and fatigue resistance, and a manufacturing method thereof. The alloy contains 0.3 to 0.8 weight percent of iron, 0.05 to 0.20 percent of silicon, 0.1 to 0.5 weight percent of magnesium, 0.1 to 0.3 weight percent of copper, 0.001 to 0.04 weight percent of boron, 0.001 to 0.04 weight percent of zirconium, 0.001 to 0.04 weight percent of yttrium, and the balance of aluminium and inevitable impurities, wherein one or two elements, except the aluminium and the inevitable impurities, account for 0.1 to 2.0 weight percent. The manufacturing method comprises the following steps of: adding the iron, silicon, magnesium, copper, boron, zirconium, yttrium and aluminium into a smelting furnace; smelting, and casting and rolling; performing intermediate annealing treatment; drawing into aluminium alloy filaments with the diameterof 0.5mm; and stranding into wire cores, and performing annealing treatment. The conductor prepared by the method has the tensile strength of 210MPa and above, the elongation at break of over 10 percent, the conductivity of over 58 percent, and excellent heat resistance and flexibility.