The State Motor Service was inaugurated by His Highness Sree Chithirathirunal on 20.2.1938. His Highness and his kin were the first passengers of the inaugration trip and Mr. Salter was himself the driver to that bus. This bus along with the 33 other buses brought on road driving through the Kawdiar Square was seen to be a beautiful attraction.

60 comet chassis fitted with Perkins diesel Engines were imported from England and the staff had built the body under the supervision of Mr. Salter himself. The selection of operating staff remains as a model which has been followed by the present staff as well. Those who were likely to lose their jobs in the private sectors due to the nationalization of Thiruvanathapuram-Kanyakumari route were given preference for appointment in the new department. Nearly a hundred Bachelor degree holders were given appoinments as Inspectors and Conductors.

Half a 'Chakram' was the minmum fare in 1938. The first class tickets had cost 50% more than the coordinating rate. During that period free travelling was allowed for children upto 3 years and only half the fare for children aged till 14 yrs. There were no luggage tickets as such but when the luggage weighed more than 28 pounds upto 56 pounds it had the levy of 4 chakras and luggage or luggages that weighed more than 56 pounds had the levy of 6 chakras upto 112 pounds and above. Since the Chakram had triple the value of a 100 rupee currency note today, the cost of travelling was comparatively higher during those days.

At the time of transfer there were only a countable number of bus schedules - 661 bus schedules and 36 lorry schedules. It possessed a fleet of 901 buses 51 lorries and 29 other vehicles. The new working of the corpoartion started with 30 new buses and 8 new lorries. 10 old buses and 7 old lorries and one tractor trailer were converted for other uses. Plant and machinery owned by Kerala State Road Transport Corporation is extended throughout all its workshops in the whole of Kerala .