PURPOSE: To obtain a poly(vinyl chloride)/polyurethane composite material in which carbon has good dispersibility and which is a thermoplastic elastomer having excellent tensile properties.

CONSTITUTION: This process for producing a composite material comprising a poly (vinyl chloride) resin, a polyurethane obtained from a polymer polyol and an isocyanate having three or more isocyanate groups, and carbon, comprises melt mixing the resin with the polyol and the isocyanate by heating under shear to cause a urethane-forming reaction and adding the carbon after the completion of the reaction.