Tata, the Indian-manufacturer of the Nano, is backing production of a three-seater city car which runs on compressed air at low speeds.

The OneCAT can be refuelled by topping up on compressed air which is used to power the car’s piston engine. At higher speeds, the car runs on conventional fuels. Developers of the car say the OneCAT has a range of 200-300km.

The technology behind the car was developed by a French-based company called Moteur Development International (MDI), which has been working on the ‘air car’ for over 10 years. Tata agreed a partnership with MDI last year to help refine the compressed air technology and push it into mass production.

The new model is expected to be priced at £2,500 and go on sale in India before the end of this year.

Analysts are still reserving judgment on how environmentally friendly the technology is until the manufacture and processes involved to compress the air can be fully accessed.