THIRUVANANTHAPURAM: Kerala is witnessing a sharp exodus of minibuses. Around 300 of these vehicles, primarily 23 to 33-seaters, that operated in Kerala were sold to buyers in Tamil Nadu in a year between June 2024 and June 2025, according to multiple sources in the private bus sector. Industry insiders said if the trend continues, the remaining 800-odd minibuses operating in the state could vanish from the roads within two to three years.
Most of the buses were sold as Tamil Nadu offers quick permits for private services on rural and interior routes, unlike Kerala where operators often face bureaucratic hurdles and financial strain. The minibuses being sold are mostly 8-10 years old and have become economically unsustainable for many owners.
“About 300 mini buses have already been sold to Tamil Nadu. Unlike Kerala, the government there gives route permits without much delay. We saw a similar trend in 2003 when our state stopped renewing permits for buses older than 15 years. Even then, many buyers came from Andhra Pradesh and Tamil Nadu. The same is now happening with mini buses,” said Hamsa Erikunnan, general secretary of the Kerala State Private Bus Operators Federation (KSPBOF).
He said minibuses disappeared from the capital city nearly eight years ago and warned that other districts, including Malappuram, Kozhikode, Palakkad, Cherthala and Alappuzha, where the buses are still active, are heading in the same direction.
“This trend directly affects the livelihood of bus workers. If 300 buses leave, it impacts more than 600 people. These are not just numbers, these are jobs lost,” he said.
Many buses were reportedly sold after obtaining No Objection Certificates (NOC) for re-registration in Tamil Nadu, while others were sold off without proper documentation to quickly cut losses.
George Antony, a former bus owner, said he was spending nearly Rs 8,000 a day on his minibus while making only Rs 3,000 in return, an unsustainable situation worsened by high maintenance costs. “My father bought the bus eight years ago for Rs 12 lakh. I recently sold it for Rs 5 lakh and gave Rs 1 lakh each to three employees,” he said.
Owners warn of further decline in mini buses
For workers, the impact is personal and painful. Surendran, a former minibus driver in Malappuram who now drives a cab in Kochi, said, “Our bus was sold for Rs 3 lakh to a buyer from Tamil Nadu without an NOC. The owner gave us Rs 20,000 each. We didn’t ask for more because we knew he was struggling.”
Even owners of larger buses are watching the trend closely. “I once owned 12 buses. Now, I have only one left. If there is similar demand for 48-seaters, we’ll sell those too. That’s how dire the private bus industry in Kerala has become,” said K K Thomas, president of KSPBOF.
The growing demand in Tamil Nadu has come as a temporary relief for some bus owners, but for Kerala’s struggling public transport sector, especially in semi-urban and rural pockets, the long-term impact could be devastating.
Senior transport officials cited additional reasons for the trend. “Most of these are four-wheeled minibuses, and we are not allocating any new routes to them due to safety concerns. In fact, there are plans to phase out their services altogether, which is why many owners are now trying to sell them, especially to buyers in states like Tamil Nadu,” said a senior transport officer.
He said the department has identified around 500 routes where only six-wheeled minibuses will be permitted in future. However, many bus owners remain sceptical, questioning who would be willing to invest in such vehicles given that the industry is already widely known to be a loss-making sector.
300 minibuses that operated in Kerala were sold to buyers in TN between June 2024 and June 2025, according to sources