Increased demand and use of fossil fuels in transportation sector accompanied by the global oil crisis does not support sustainable development for the future generations to come. Not only that, today's on-road vehicles produce over one third of the CO and NOX present in our atmosphere and over twenty per cent of the global warming pollution. This air pollution carries significant risks for human health and the environment. Through clean vehicle and fuel technologies, it is possible to significantly reduce air pollution from our vehicles. In such a grim situation, Compressed Air Vehicles (CAV) powered by pressurized air stored in high pressure storage tanks seem to be one of the practical solutions available for tackling the fuel crisis and environment related issues. After successful development of an advanced compressed air engine kit (used for conversion of a small-two stroke SI engine to Compressed Air Engine), vast scope for further developments lie ahead in the various intake parameters. In order to maximize performance, it is necessary to optimize intake conditions. This paper aims at optimizing two intake parameters to improve performance. The injection angle of air into the engine cylinder was varied and optimum injection angle was found. The air injector port area inside the engine cylinder was also varied keeping a constant mass flow rate and its effect on the performance of the engine was evaluated. By optimizing intake conditions in a CAE, the compressed air stored in storage tanks can be efficiently used in order provide longer running time for engine with same amount of power output. The study and its investigation results can be used for the improvement of performance of CAV's.