The production of domestic crude has been declining and the transport system has been increasing depend on imported crude oil to meet its needs. There is a growing concern that the world may run out of petroleum-based fuel resources. All these make it imperative that the search for alternative fuels is taken in right earnest. With the current fuel sources diminishing, we are looking for alternative ways to power our automobiles. With this goal in mind, companies are actively developing various new technologies from the perspective of achieving energy security and diversifying energy sources, which is necessitated by the dwindling supply of petroleum resources. The air engine works with air that is taken from the atmosphere and air pre-compressed in tanks. Air is compressed by the on-board compressor or at service station equipped with a high-pressure compressor. Air powered vehicles provides most comprehensive answer to todayrsquos urban pollution problems in simple economic and most inoffensive manner which makes car users to replace their present cars running on gasoline in the coming years as these cars are safe to use safe to users and are also environment friendly.