Mexico City Expands Incentives to Replace Aging Microbuses

Mexico City has announced a new round of incentives to retire aging microbuses and replace them with newer units. The measure expands the capital’s ongoing transport renewal strategy, which has also included taxi scrappage and electrification programs.

According to the Mexico City government, the program will support the scrapping and replacement of obsolete microbuses with newer units, preferably electric, using government bonuses that can reach up to MX$900,000 (US$52,387) per unit for electric options. With complementary financing from international funds and trust mechanisms, total support for some electric replacements could reach nearly MX$1.8 million (US$104,774). 

Mayor of Mexico City Clara Brugada says the city’s goal is to eliminate all microbuses in poor condition by 2030, which would require replacing roughly 500 to 600 units per year. The government reported that 535 transport units were scrapped in 2025 and said 2026 began with 220 microbuses set for scrapping, plus 119 additional units already withdrawn from service, for a total of 339 units out of circulation at the start of the year’s push.

The policy signals a more aggressive attempt to modernize concessioned public transport while reducing emissions and improving service quality. In the official messaging, Brugada frames the program as both a mobility and environmental measure, emphasizing the need for cleaner, safer, and more dignified transport options for residents.

The microbus initiative also fits into a mobility strategy the city has already begun applying to taxis. In late 2025, Mexico City launched its taxi renewal and modernization programs, including the scrapping of 300 taxis more than 10 years old and tiered subsidies for replacement vehicles: MX$120,000 (US$6,985) for gasoline units, MX$150,000 (US$8,731) for hybrids and MX$200,000 (US$11,642) for fully electric taxis.

That taxi program was presented as part of a wider 2026 agenda that includes a stronger official taxi app, safety upgrades, and driver training, including preparations tied to the 2026 FIFA World Cup. City officials also outlined safety features such as GPS/geolocation, panic buttons, onboard cameras, and monitoring support to improve passenger and driver protection. 

The city also introduced the “Sustainable Taxi Replacement Program,” under which incentives can reach MX$200,000 (US$11,642) for fully electric taxis, alongside lower support levels for hybrid and gasoline replacements, MBN reports. At the time, Brugada emphasized taxis as a core part of urban mobility, as they carry an estimated 600,000 people daily, and linked the strategy to broader sustainability and service-quality goals.

For taxis, the subsidy scale is lower but designed for high-volume fleet turnover and service digitalization. For microbuses, the support package is larger, reflecting the higher cost of replacing heavier public transport units and the city’s effort to accelerate structural change in concessioned routes.