Improvement in mechanical properties of fibre-reinforced polymer composites through proper matrix modification has emerged as the significant trend in recent advanced technology. Dispersion of nanofillers in the matrix results in ultra-light weight, high strength, impact resistant and durable structures. In the current investigation, effect of the addition of varying percentages (0, 1, 3, 5 and 7 wt.%) of low-cost nanoclay to the unsymmetrical carbon/glass (C2G8) hybrid composites on mechanical, tribological and low-velocity impact (LVI) behaviour were investigated. Using traditional hand lay-up techniques, nanocomposite specimens were prepared. The results revealed that C2G8 hybrid composite with 5 wt.% loading of nanoclay possessed maximum hardness (35 HV), flexural strength (494 MPa), impact strength (Izod (119.022 kJ m−2), Charpy (563.922 kJ m−2)) and minimum specific wear rate (19.6 × 10−3 mm3 Nm−1) in comparison with other hybrid combinations. LVI test also revealed enhanced energy absorption (112.46 J) for hybrid nanocomposite against plain C2G8 hybrid composite. Furthermore, the damage depth and areas were observed by visual inspection and scanning electron microscope to account for best possible structure–property relationship. Developed hybrid nanocomposite may be considered as a suitable material for various automotive applications.