It really depends on how much electricity/other fuel is used to compress all that air, but yeah, I think it’s cool.  Popular Mechanics reported last year that the TATA Motors version (for the Indian market) is held together with glue.  I’m guessing that won’t fly in the U.S. and Europe.  Maybe they should use duct tape instead of glue.

http://www.popularmechanics.com/automotive/new_cars/4251491.html

Here’s the Zero Pollution Motors explaination of how the thing works:

Zero Pollution Motors (www.zeropollutionmotors.us)

Clear as mud?  Well, if that’s not enough for you… check out their video (sans commentary naturally).