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On various locations worldwide people are experimenting with air cars. Many technology students develop a compressed air vehicle as a graduating project. Nowhere however has anyone reached the threshold of mass production, like MDI and Tata have.

Tata Motors, India's largest car company, has bought early 2007 the rights to use the MDI technology for all applications, but only in India. Tata is especially known for it's Nano, the cheapest car in the world. Meanwhile, Tata and MDI have collaborated for years to get the technology market-ready. In May 2012 Tata released the following official message: The first phase of the collaboration with MDI has been completed (technology proven in Tata vehicles) and 2 Tata cars have been converted to compressed air. Now for the second phase: detailed development of both stationary and mobile applications (cars).
It is expected that Tata will launch a few of its models on compressed air in 2014. Maybe we'll see a presentation at the New Delhi car show in February 2014?
In Australia Angelo Di Pietro has developed a rotary compressed air engine that seems to have its merits. It weighs considerably less than the MDI engine. Here are Engineair's website, an interview, an article in Wikipedia, a Peswiki and a video about his work and another one. Here's some more documentation. And now a very short little video that shows both engines in action: the MDI system and the Di Pietro one. A video with an interview with Di Pietro in 2010.
The Uruguayan engineer Armando Regusci claims to be the great-great-grandsun of Alexander Volta. You can see him here with his experimental vehicles running on compressed air. Here he answers to a list of questions. A video in Spanish and some pictures. He is now in a partnership with businessman Nassir Arzamkhan and together they are looking for investors to further develop their prototypes. His site. My interview Sept 2012. Hearing at parliamentary commission May 2013.
French PSA (Peugeot - Citroën) presents a hybrid system, Hybrid-Air, a combination of a gasoline engine and compressed air. There is no need for a refill of the compressed air (nytrogen really), as it is a closed system. The car compresses the air in a hydraulic manner when braking and uses this momentarily stocked energy for acceleration. The system entices a weight increase of 100 kg. The newest prototype consumes just below 3 liters/100 km, this being a step towards the aim of 2 liters/100 km. Hybrid Air will be applied to cars of the B-segment (Citroën C3, Peugeot 206,...) from 2016. The price increase is expected to be very reasonable, certainly compared to the price of an EV. PSA needs more funding and is negociating a partnership with Chinese Dongfeng that will consequently have access to this technology as well.
In celebration of the century of existence of the Ford T model, Ford has launched an international contest for the Ford T of the 21st Century. Deakin University (Australia) won the first prize of 25.000 US$ from 5 other universities with its design of the . This compressed air car is a threewheeeler that seats three, that could be sold around 9000 $, and that has a range of 40 to 50 miles with its carbon tank of 13 gallons of compressed air located down in the middle throughout the length. For longer trips, it is aided by compressed natural gas. Each of the two front wheels contains a rotary di Pietro-engine. Turning is obtained by activating one of them more than the other. The rear wheel is a lose castor wheel, which allows the car to spin around. Interesting video part 1 and part 2
In Quebec, the Quasiturbine, an invention by the Saint-Hilaire family, is a rotary elliptical engine without crankshaft, very light weight, without vibration nor "dead time", that can work by compressed air amongst others. Have a look at their official site and a site by a fan association, and now a short video , and an other one.
The French private association Kernelys is primarely working on the development of compressed air  powered tricycles. Here's some more.information.
Then there is the MRAP, Moteur Rotatif à Air Pressurisé, invented by Monsieur Régis Munoz, (French) that works really well on compressed air, he says, but can also use conventional fuels instead
And Glenn Bell, of the Silicon Valley based Air Fuel Auto, has built his compresed air engine MIIN-AER (Minimally Intrusive Intensely Pneumatic - Air Energy Recovery) in a Porche Boxster. It has a range of 50 miles and a top speed of 65 m/h.
ElectroAirBike is a French project partially run by students in partnership with the city of Reims. ElectroAirBike 003 is a utility vehicle powered by compressed air stored at 200-300 bar, presented at the 2009 Salon Inov'Act in Reims.
In India, mister Kanak Gogoi, after having invented a small car running partly on its photovoltaic panels on the roof, has presented his Trygo Pwan Ex, powered by compressed air (article) and has tried to get Tata Motors interested.
This tiny car (photo) can surprisingly hit 90 km/h ... if you survive it! The refill takes only 5 minutes or 2 hours and a half if you have an onboard compressor do the job, connected to the mains. It can run for around 2 hours on a full tank.
The Venezuelan engineer Luis Solórzano has developed an air motor, called "thermic generator", that starts thanks to the wind input of an electric fan, but once turning produces more energy than the fan needs. The air looses temperature on its way through the motor. By means of feedback from the generator to the fan, the motor keeps turning without having to carry any supply and without pollution. Here you see a video presentation in English.
The French Equideus project is developing a compressed air engine and is looking for investors - licensees to market it. This rotary turbine engine, invented by André Laurent Bernard and patented (English) in Europe and China, has no limits as to power nor range, according to Bernard. It has an efficiency 5 times that of the existing pneumatic engines and eliminates the need for carrying along a heavy, cumbersome and expensive air tank. It uses 100 % of the decompression. Here's their site (all in French).
On Sunday, June 6th 2010 a circuit with a small air car (photos) by Philippe Descottes made happy children at the Red Cross fair at  Montech (near Toulouse - France). Philippe Descottes, who allready in 1978 filed a patent for a "pneumatic motor with tangential exercise" describes together with Vincent Martellière a hybrid motor set for a vehicle or a power generator. This concept comprises a thermic motor-compressor running on diesel or gas, a pneumatic transmission and one or several pneumatic motors. This combination is to be retrofitted into an existing car.
The EPOCH by Psycho-Active is a vehicle that is equiped with the hybrid compressed air and multifuel engine DBRE.
In Samarkand (Uzbekistan), a 15 year old student at the academy, Maruf Karimov, has won the first prize in a contest. He has managed to convert a conventional combustion engine into a compressed air engine, that refills from the ambient air during the ride and may therefore approach the concept of a perpetuum mobile. He has built it in an old car and has been able to drive slowly for several hundred yards. The youngster will possibly cooperate with engineers of the German VAG group to inprove the engine, according to Pravda.