The car makes use of electrical energy to convert into mechanical energy for compressing the air. The compressed air is then stored and converted back to drive the pistons, engine and the wheels of the car. In between of the transform to and from different types of energy will surely cause some losses.
Basically, this air-powered car is making use of the compressed air as an energy storage medium, which could be less expensive, dangerous or both compared to other energy storage medium such as batteries or hydrogen.
