While the rest of the world argues whether it is cost effective to go in for hybrids or electric or diesel vehicles and the ways in which it could be done, Tata Motors of India is quietly working on the next miracle after the USD $2000 car. The Tata Nano was a wonderful piece of engineering , great for nature lovers too. The MDI OneCat air car promises to go a step further.

While the Nano gave an astounding fuel efficiency, chiefly due to the light weight and smaller engine capacity of the car - the MDI OneCat takes an entirely different approach. It will run on compressed air.

Tata aims to produce this car merely for India as was the Nano and has no plans currently to export it. What makes this a winning proposition is that unlike other alternate fuel cars like say hydrogen, this car requires no other infrastructure then the existing one.

The OneCat will seat five; its fiberglass body is just one of the many ways that the total weight of the car is reduced to just 350 kilograms. The car will sell for less than $5,000.

The AirCar is powered by compressed air stored in carbon-fiber tanks built into the chassis of the car. Compressors at filling stations will get you back on the road in just three minutes.

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