Compressed air as a source of energy in different uses in general and as a non-polluting fuel in compressed air vehicles has attracted scientists and engineers for centuries. 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. Nowadays, almost every industry is trying to develop light and efficient vehicles. Today, all the the vehicles running on conventional & non-conventional fuels are known for producing a large amount of harmful gases like CO2 , SO2 , NO2 , etc. which acts increases global warming. The motto of our project is to design & fabricate vehicle running on air pressure for material handling in industries and reduce power consumption. It is rear wheel drive. We develop the concept of pneumatic vehicle from pedal operated tricycle. The vehicle looks like three wheeler in which manual operation is replaced by compressed air pressure. The following report gives a brief description of how a compressed air vehicle using this technology was made. While developing of this vehicle, control of compressed air parameters like temperature, energy density, requirement of input power, energy release and emission control have to be mastered for the development of a safe, light and cost effective compressed air vehicle in near future.