Tata Motors is taking giant strides and making history for itself. The company is set to introduce a new car that runs on air, compressed air to be specific.

India's largest automaker, Tata Motors, is set to start producing the world's first commercial air-powered vehicle. The Air Car, developed by ex-Formula One engineer Guy Nègre for Luxembourg-based MDI, uses compressed air, as opposed to the gas-and-oxygen explosions of internal-combustion models, to push its engine's pistons. Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets in August of 2008.

The Air Car, called the MiniCAT, could cost around $ 8177 USD in India and would have a range of around 300 km between refuels. As doe the fuel refill, that would cost you $2 USD.

There are no keys to the MiniCAT - just an access card which can be read by the car from your pocket. Its mileage is double than that of the most advanced electric car, a bonus that makes a perfect choice in cities where 80% of motorists drive less than 60 km/h.

Refilling the car will, once the market develops, take place at adapted petrol stations to administer compressed air.