India’s Intercity Bus Industry Surges with 25% Growth and 140 Million Travelers Across Expanding Networks

Impressive Growth in India’s Intercity Bus Travel

The first half of the financial year 2025-26 witnessed a remarkable leap in India’s intercity bus industry, with passenger numbers soaring over 140 million—a robust 25% increase compared to the previous year. This rapid expansion can be attributed to the widening bus route network, the rise of digital ticketing, and travelers’ rising expectations for comfort and reliability. Such developments not only highlight how bus transport is becoming increasingly popular but also set the stage for broader mobility shifts.

Expanding Route Networks and Deeper Reach

At a glance, the intercity bus network in India now spans more than 6.7 lakh unique routes serving upwards of 11,000 towns and cities. This unprecedented reach signals greater penetration into smaller towns and rural areas, where more than 60% of bookings now originate. The spread into tier-2 and tier-3 cities is reshaping travel habits, encouraging passengers to opt for buses as convenient and cost-effective alternatives for intercity trips.

Table 1: Highlights of India’s Intercity Bus Network in H1 FY26

Shifting Passenger Preferences Toward Comfort

Comfort remains a decisive factor for passengers choosing intercity bus travel. Sleeper and hybrid buses accounted for 85% of journeys, while air-conditioned services represented 71% of all seats sold. This preference for premium options indicates rising expectations for convenience, especially on lengthy routes. Moreover, long-haul travel has gained traction, with about 65% of routes surpassing 250 kilometers, showing a clear move toward cross-state journeys rather than short regional trips.

Regional Market Leaders and Occupancy Rates

The market distribution is led by Maharashtra and Goa, which account for 16% of total seat bookings, closely trailed by Tamil Nadu with 15%, Andhra Pradesh and Telangana combined with 13%, and Karnataka at 11%. Average seat occupancy across India stands at a solid 76%, with Andhra Pradesh and Telangana boasting the highest at 84%, reflecting strong regional demand. On the other hand, Madhya Pradesh and Chhattisgarh experienced lower utilization levels of about 63%, showing some room for growth.

Digital Adoption Fuels Growth and Accessibility

The seamless integration of digital platforms in ticketing has proved pivotal. Data reveals that non-metro cities and towns contributed to 61% of bookings, highlighting a sweeping digital penetration beyond major urban centers. Meanwhile, top six metros accounted for 33%, with other state capitals filling the remaining 6%. Young travelers, aged 18–36, represented nearly two-thirds of bookings, and male passengers made up 65%, reflecting the youthful, tech-savvy base driving the intercity bus market.

Such impressive digital strides also align with the growing desire for transparent and detailed information about travel options. For passengers looking to book reliable and comfortable rides, platforms like موقع LocalsRide.com offer a user-friendly experience that allows travelers to select their preferred vehicle type, view details like make, model, and driver ratings, and enjoy pricing transparency uncommon with traditional aggregators.

How These Trends Impact Taxi and Transfer Services

This surge in intercity bus travel and the technology-driven transformation indicate a broader shift in how people manage regional mobility. As more passengers embrace convenience and premium travel options, taxi and private transfer services naturally respond by enhancing their fleets and offering tailored services to connect passengers from bus stations to final destinations seamlessly. The demand for private, comfortable rides complements intercity bus travel, making last-mile connectivity and transfers critical components in the evolving transportation ecosystem.

Key Passenger Preferences Affecting Taxi Transfers

• Comfort and Climate Control: The preference for AC and sleeper buses shows travelers prioritize comfort, a standard taxis must match.
• Young and Digital-Savvy Users: High digital booking rates suggest taxis need user-friendly apps and transparent pricing.
• Expansion Beyond Big Cities: As smaller towns grow into new travel hubs, taxi services must similarly expand their reach.

Summary and Outlook

India’s intercity bus industry is expanding rapidly, with passenger numbers hitting 140 million in the first half of FY26 and a strong 25% year-on-year growth. The widening network, especially into smaller towns, paired with increasing adoption of digital ticketing and demand for comfortable travel, is reshaping the nation’s road transport dynamics. Regions like Maharashtra, Tamil Nadu, and Andhra Pradesh demonstrate high occupancy and market activity, while younger, digitally connected travelers form the bulk of this growth.

These developments underscore a clear shift toward integrated and premium travel experiences, setting a new bar for taxi and transfer services that help fill important connectivity gaps across cities and rural areas alike.

The significance of these insights lies in the evolving transportation landscape, which increasingly values convenience, comfort, and technology-driven solutions. Still, the best measure of any travel experience comes from firsthand journeys. On موقع LocalsRide.com, travelers can easily hire cars with knowledgeable drivers from trusted providers offering competitive prices and a broad selection of vehicle types. This empowers users to make informed decisions, avoiding surprises and extra costs. With a wide range of customizable options, LocalsRide offers transparency and convenience aligned with today’s traveler expectations. Get the best offers موقع LocalsRide.com.

Looking forward, while this surge in India’s bus travel is mainly a domestic phenomenon that highlights expanding regional mobility and infrastructure improvements, its ripple effects extend to the broader travel and tourism sector. Platforms like LocalsRide continue to adapt and embrace these changes, aiming to provide seamless, personalized travel experiences that keep pace with evolving passenger demands. Start planning your next adventure and secure your worldwide transfer with LocalsRide.