The vehicle's new engine, hailed as 'one of the biggest technological advances of the century', uses air compression to turn the pistons without creating any pollution.
Once out on the motorway, the lightweight vehicle can reach 110kph (68mph).
The first car to go into production using the new technology is the MiniCAT.
The £5,500 fibreglass car will cost just £1 to charge up for eight hours of city driving or to cover 200km (124miles).
Moteur Development International, based in Nice in the South of France, spent 14 years developing the engine.
It stores compressed air in tanks and uses it to push the pistons while the air conditioning system uses cold air expelled by the engine. The air tanks can be recharged by using a small, mains-powered compressor.
MDI also envisages users charging their cars at air pumps on petrol station forecourts.
MDI founder, Guy Negre, said: 'Compressed air technology allows for engines that are both non-polluting and economical.
'Unlike electric or hydrogen-powered vehicles, our vehicles are not expensive and do not have a limited driving range.'
It is unclear when the first vehicles will be rolled out.