OREANDA-NEWS. May 11, 2012. In January 2007, Tata Motors and Motor Development International (Luxembourg) signed a licence agreement that enables Tata Motors to produce and sell compressed air cars using MDI technology in India. The agreement covered two phases of activity encompassing the technology transfer and proof of the technical concept in the first phase, and in the second phase completing detailed development of the compressed air engine into specific vehicle and stationary applications.

The first phase of this programme — proof of the technical concept in Tata Motors vehicles — has now been successfully completed with the compressed air engine concept having been demonstrated in two Tata Motors vehicles.

In the second phase of the development, the two companies are working together to complete detailed development of the technology and required technical processes to industrialise a market ready product application over the coming years.