The increment in the application of fossil fuels is leading the world into a catastrophic state both environmentally and economically. Current demand for fuels exceeds its imminent supply and rather sooner than later energy demands will have to shift towards non-conventional fuels to cope with the situation. With constant developments in the automotive sector, several solutions have been found but none have been as good as gasoline to substitute it in the commercial market. One such solution being compressed air might solve this global fuel crisis, which serves a glowing advantage of being cheaper and greener as it produces zero tail-pipe emissions, and can help in decreasing automobile’s contribution to global warming. Though the potential energy stored in the compressed air limits its application to light duty vehicles and still there will be a need for other alternative solutions for the heavy duty vehicles in order to relieve the pressure from the fossil fuels. Post the development of an advanced compressed air engine kit for a 2-stroke air-cooled SI engine 145cc; there is a big scope for enhancing its performance and efficiency in order to commercialize this technology in production cars. Present investigation aims at optimizing the injector area, expansion ratio (final volume/initial volume) and weight of the flywheel in order to get maximum possible power output and torque from the engine. Valued statistics f\rom previous readings and analysis on aforementioned intake and injection parameters are deliberated and testing and performance analysis is conducted. The results help in obtaining optimum values of the intake and injection parameters and can be used to further enhance the performance of compressed air vehicles to produce a more efficient system.