Compressed air as a source of energy in different uses in general and as a non-polluting fuel. Efforts are being made by many developers and manufacturers to master the compressed air vehicle technology in all respects for its earliest use by the mankind. The present paper gives a brief introduction to the latest developments of a compressed-air vehicle along with an introduction to various problems associated with the technology and their solution. While developing compressed air vehicle, control of compressed air parameters like temperature, energy density, requirement of input power, energy release and no emission development for a safe, light and cost effective compressed air vehicle in near future. Reducing the weight of the vehicle has many advantages as it increases the overall efficiency of the vehicle, helps in improving maneuverability, requires less energy to run and stop the vehicle.