The Transport Department functions under the provisions of section 213 of the Motor Vehicle Act, 1988. The Transport Department is primarily established for enforcement of the provisions of the Motor Vehicle Act, 1988, Andhra Pradesh Motor Vehicles Taxation Act, 1963 and the rules framed there under. Of various types of transport facilities available road transport plays a unique role as the best mode of transport for relatively short distances connecting the rural areas with towns and cities for which other modes of transport are not readily suited. In this regard, the Transport Department of Andhra Pradesh assists other organizations in the development of transport facilities and endeavors to provide an efficient, adequate and economic transport service for the movement of passengers and goods by road.

In discharging statutory functions, the department has shaped up as one of the major revenue earning departments to the Government in the shape of taxes on motor vehicles.