The Air Car, developed by ex-Formula One engineer Guy N. for Luxembourg-based MDI, uses compressed air to push its engine's pistons and make the car go. Tata Motors of India has scheduled the Air Car to hit Indian streets by August 2012. The Air Car, called the ‘Mini CAT’ could cost around 365,757 rupees in India or $8,177 US.

The Mini CAT, which is a simple, light urban car, with a tubular chassis, a body of fibreglass that is glued not welded and powered by compressed air. A microprocessor is used to control all electrical functions of the car. One tiny radio transmitter sends instructions to the lights, turn signals and every other electrical device on the car. The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero, which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power. There are no keys, just an access card that can be read by the car from your pocket.

According to the designers, it costs less than 50 rupees per 100 KM (that's about a tenth the cost of a car running on petrol). Its range is about double that of the most advanced electric car, a factor that makes it a perfect choice for city motorists. The car has a top speed of 105kmh (65mph), and would have a range of around 300kms or 185miles between refuels. Refilling the car will take place at adapted fuel stations with special air compressors. A fill up will only take two to three minutes and costs approximately 100 rupees, and the car will be ready to go another 300 kilometres.

This car can also be filled at home with its on board compressor. It will take 3-4 hours to refill the tank, but it can be done while you sleep. Because there is no combustion engine, changing the single litre of vegetable oil is only necessary every 50,000 kms or 30,000 miles. Due to its simplicity, there is very little maintenance to be done on this car. This Air Car almost sounds too good to be true.