Why 30% Of Indian Car Owners Would Prefer Buses, And Intercity Mobility Firms Race To Serve Them

With nearly 70% of surveyed travellers preferring premium buses over flights or trains on 400–600 km routes, India's intercity bus mobility is still nascent and is battling to catch up.

29 Sep 2026 | 69 Views | By Anurag Chaturvedi

A last-minute change in a pickup point can cause panic for a family with children and luggage or even a solo traveller commuting to another city. Then they find that the "Volvo" sleeper bus they expected to board doesn't even have a proper logo to imitate the brand.

"You were rolling the dice before you left home. Will I get what I paid for?" says Surya Khurana, Managing Director of FlixBus India. "Volvo manufactures maybe 100 to 200 buses a year in India. Three years ago, if you opened a booking app, you'd see one route running fifteen 'Volvos.' The seams were different, the configuration was different, the lights were different," Khurana says.

That is one of the diagnoses Khurana found during the months he spent at bus terminals before FlixBus launched in India in 2023. But the biggest shortfall was an industry built on family-run operations that had simply outgrown what a family could manage. FlixBus India bets on technology to fix both without owning a single bus.

A Trade That Outgrew The Family Firm

"Up to 20 buses, you can run it like a small company. The owner, a child, a relative, they run it together," says Khurana. Above that number, he adds, the job changes shape entirely. Pricing has to flex by route and season, drivers need rosters, buses need depots, and someone has to answer when a pickup point moves. "It's difficult to scale above 20, and the difficulties that fifteen-to-twenty-bus operators face, tech can solve. That's where we come in."

By his own estimate, 97 to 98 per cent of India's private bus operators run fewer than 15 vehicles. IntrCity SmartBus, another asset-less network reshaping this market, puts the unorganised share of the industry at 60 to 65 per cent. The two companies use different numbers. However, they agree on the shape of the problem. Most of the country's bus capacity still runs at a scale technology has never touched.

FlixBus India works with 50-plus fleet partners supplying an average of eight to ten buses each, to a 400-plus bus network built since the company entered India in 2023. IntrCity SmartBus runs 670-plus routes across 17 states. Both operate on the same model. They manage network planning, pricing, branding and safety compliance, while the partner keeps the vehicle and most of the operational risk.

What Travellers Want

The IntrCity SmartBus Intercity Mobility Survey 2026 reports whether Indian travellers are actually buying into this shift, and not just being supplied more of it. Over 13,000 people answered via IntrCity's WhatsApp and email channels through existing bookers, searchers and app visitors. Nearly two-thirds of respondents came from the six metro cities, 74.3 per cent were aged 18 to 43, and 65.9 per cent were salaried professionals, the demographic core IntrCity is presumably already selling to.

Asked to choose, hypothetically, between a premium bus, a personal car, a train or a flight for a 400 to 600 km trip at identical cost, 69.6 per cent picked the bus. Among car owners in the sample, 30.4 per cent said they'd still rather not drive that distance themselves.

Asked what matters most in choosing a shared mobility service, with up to three answers allowed, 43 per cent picked safety, ahead of affordability at 42.5 per cent and cleanliness at 40.5 per cent. Among women, who accounted for about 39 per cent of the total survey, 64 per cent named safety as an important factor, though the survey doesn't say it was their top or only concern. Comfort and amenities, digital access and avoiding driving stress were the main reasons for using shared mobility more.

On price, 71.2 per cent said they'd pay more for better safety, comfort and reliability, but that figure blends three answers. Some 22.9 per cent said yes outright, 17.3 per cent were willing to pay up to 20 per cent more, and 31 per cent said it depends on the journey. Add only the first two, and the firm premium-payers are closer to 40 per cent than 71.

"The Indian intercity traveller has evolved significantly," Manish Rathi, co-founder and CEO at InterCity and its sister company RailYatri (a leading Indian multi-modal mobility platform for train journeys), said when the survey was released. "Today's passengers are looking beyond affordability and are placing equal importance on reliability, comfort, safety and digital convenience."

Separately, when asked what stops them from using shared mobility more, safety again topped the list, named by a third of respondents as the single biggest barrier. The two answers sit uncomfortably together. Safety is both the reason people choose a service and the reason they hesitate to use one more.

An independent read on that claim comes from redBus, one of the largest tech-driven bus ticketing platforms, with a network of private and government bus operators. Its BusTrack Report covers private-bus inventory connected to its own platform between April and September 2025, not the industry at large. It counted 140 million passengers, a 25 per cent rise on the same six months a year earlier, generating ₹13,200 crore in ticketing value. Prakash Sangam, CEO of redBus, attributes the growth to "existing bus operators adding inventory, new operators starting businesses on traditional routes and digitisation of inventory in long tail and new routes," rather than to any single platform's push.

The comfort preference IntrCity describes shows up in redBus's numbers too. Air-conditioned services accounted for 71 per cent of seats sold, and sleeper or hybrid coaches for 85 per cent of all journeys. Non-metro towns drove 61 per cent of bookings, indicating that this shift isn't confined to big cities, even if most of the survey data measuring it is. However, standardisation hasn't reached every state equally. Pan-India seat occupancy averaged 76 per cent, while Andhra Pradesh and Telangana filled 84 per cent of seats and Madhya Pradesh and Chhattisgarh managed only 63, a 21-point gap between the platform's best and weakest markets.

Demand, in short, is broad but unevenly served, which leaves the quality of supply as the open question.

The Price Of Admission

For potential partners, meeting compliance and quality standards to get into these tech-enabled platforms isn't a cakewalk either. FlixBus India's records put its partner rejection rate at roughly 72 per cent, screened on vehicle standards, safety compliance and service history. Khurana describes an audit covering financial profiling, loan terms, the operator's credit relationship with the vehicle maker and bodybuilder, even whether the yard has a mechanic on staff. The company records that its current partner buses meet BS-VI norms, have an average fleet age below 1.5 years and undergo recorded pre-departure checks. The company also says its control team monitors driver alerts from dashcams and driver-monitoring systems. Of those alerts, Khurana said, "99% are false positives."

On the governance front, the government's safety data show why procedures need to be checked on the road as well as written into company standards. As of 6 February 2026, India had 49,616 registered sleeper coaches and 886 accredited bus-body builders, according to the Ministry of Road Transport and Highways. After multiple fatal sleeper-coach fires between 2025 and 2026, the ministry said it had advised states and union territories to check AIS-052 and AIS-119 compliance during registration and fitness inspections. Its account of the Jaisalmer–Jodhpur fire investigation listed defects including emergency doors that did not meet minimum dimensions, seats obstructing an exit and missing fire-detection and suppression equipment. The ministry's reply said these issues should have been detected during certification.

Nonetheless, for the operators who get through, the pitch is economics and cash flow. Khurana describes a 70-30 revenue split cushioned by a minimum guarantee, so a partner's income doesn't collapse on a slow route. "Whatever revenue comes, we split 70-30," he says. "But to cover the risk of the bus partner, we give them a minimum guarantee. You will definitely get this much."

Traditional contract work, staff shuttles, runs on 60-to-90-day payment cycles; charter bookings typically pay 20 per cent upfront, the rest after the trip, says Khurana. The German-headquartered company settles with partners weekly, seven days after a ticket sells. Its bulk relationships with vehicle makers and bodybuilders can also cut a new bus's delivery time from three or four months to two, shortening the gap between taking a loan and earning against it. "Net-net, there is no capex increase," he says. "It's actually a capex reduction, with the ability to scale up much faster." That's one executive's account of his own model, but it explains why he says the harder job wasn't convincing operators to join. It was managing how many wanted in.

Where Control Ends

What none of this standardisation reaches, on FlixBus's own account, is the pickup point. "There are instances where it goes out of our control as well," Khurana said. Fewer than 1 per cent of its pickup points give it access to a public, government-run bus terminal, and Delhi's Kashmiri Gate ISBT and one site in Chennai are the examples he names. A rebuilt terminal changes that instantly, in his account, with kerbside entry, a covered waiting area, a digital screen showing when the bus arrives and a direct link to the metro. He argues that cities benefit from recurring revenue, easier security and less congestion.

Everywhere else, passengers still meet the bus on a roadside kerb or an unpaved yard, the same setup Khurana describes from Kashmiri Gate before it was rebuilt. "First rain, and the yard used to turn into sludge. A family of five, a lady with one kid on her hip, two more kids, three bags to carry, and they have to walk through that just to find their bus, in an area with no platform, no curbside, nothing."

FlixBus, launched here only in 2023, expects India to become Flix's largest market globally within a few years, by both passengers and kilometres driven. FlixBus said in September that it planned to add 120 buses across its South India network in the third and fourth quarters of 2026; the company said more than half its Indian network was already in the region. Its announcement is a capacity target, not a count of buses already deployed. On the ground, an internal FlixHost app gives boarding staff route changes, weather alerts and performance ratings, in English and Hindi.

Asked which Indian practices are now used in its global operations, Khurana said gender-based seating and WhatsApp-based passenger updates, both built for the Indian market, have fed into product conversations in the broader Flix network.

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