I heard they are thinking about disconnect Cal commuter train due to lack of riders.
Yes. There is CalTrain at 13399 Monterey (x at W. San Martin). You can call them at 800/660-4287. That service can take you all the way to San Francisco and everywhere in between.
There is Greyhound in Gilroy. Call 408/847-7610.
Then there are several taxi services. Try "South Valley Cab" at 408/776-1111 out of Morgan Hill. If you are looking for rides to San Jose Airport there are a few different shuttle services.
As far as traditional bus service for in and around San Martin there really isn't anything.
If you have further questions feel free to give us a call.