The investigation deals with AISI 1040 grade steel used in the automobile industry in the form of axles, gears, bolts, shafts, couplings, and dowels. Machined tensile samples as per ASTM E8 standard undergone heat treatment cycle i.e. heating and soaking temperature of 750 °C and followed by controlled cooling in such as furnace cooling, air cooling, quenching in water, ice, commercially available lubricant, emulsified soluble coolant. Tensile, hardness, and corrosion tests performed on samples to assess mechanical properties and corrosion behaviour. Presence of both dimples and flakes in SEM images pertaining to as received, annealed and normalized failed tensile samples demonstrates the mixed mode (ductile–brittle) and remaining failed tensile specimens dominated with the presence of flakes, which exemplifies the brittle mode of failure. The presence of martensite in hardened samples resulted in the highest strength (990 MPa), but the same has caused an adverse effect on corrosion by favouring the formation of the galvanic couple with ferrite. In contradiction to the above, annealed samples showed better corrosion resistance (-0.22v) due to the presence of larger grain size, the lesser extent of inter-granular galvanic sites, and uniform dissolution of carbides.