Mexico City Launches Taxi Modernization, Electrification Program

Mexico City has launched a new program aimed at accelerating the modernization and electrification of its taxi fleet. Spearheaded by Mayor Clara Brugada, the Sustainable Taxi Replacement Program will offer financial incentives of up to MX$200,000 (US$11,127) per vehicle for companies and drivers who replace their outdated models. 

Financial support will vary depending on the type of vehicle used to replace an existing taxi. The city government will provide up to MX$100,000 (US$5,563) for purchases of gasoline-powered taxis, MX$150,000 (US$8,345) for purchases of hybrid vehicles, and up to MX$200,000 (US$11,127) for purchases of fully electric taxis. 

All three incentives aim to encourage the adoption of lower-emission vehicles. While estimates on emissions reductions caused by a transition to EVs vary depending on the model and makeup of the local electric grid, EVs are estimated to reduce 58% of emissions on average, compared to gasoline-powered vehicles. As Mexico works to increase the share of renewable energy powering its grid, emissions savings will only further increase.

Moreover, even modern combustion engine vehicles reduce emissions when compared to the older models commonly found in Mexico City’s taxi fleet. According to data from the US Environmental Protection Agency (EPA), the average passenger vehicle in 2000 had a fuel efficiency of nearly 20mpg, while in 2020 that figure rose by 25%, reaching over 25mpg. 

In light of these advances in fuel efficiency, taxis over 10 years old will be permanently removed from circulation through a scrappage process. City officials say this measure is intended to reduce polluting emissions and improve safety and operating conditions across the taxi system.

Brugada stresses the importance of this transition for the city’s overall sustainability goals. She notes that taxis transport an estimated 600,000 people every day, comprising a central component of urban mobility in the capital. 

“The goal is to move toward a safer, more modern, accessible, and sustainable transportation model,” says Brugada. She adds that fleet modernization is part of preparations for upcoming international events, including FIFA World Cup matches to be hosted by the city in 2026. The push for EVs is also expected to support the expansion of clean mobility infrastructure and align the capital with international urban sustainability standards.

The program will be complemented by the development of a city-run taxi application, according to Minister of Mobility Héctor García. The app is designed to allow traditional taxis to compete more effectively with private ride-hailing platforms, while also bolstering safety and transparency. García says the platform will include real-time geolocation, panic buttons, and continuous trip monitoring for both passengers and drivers. These features will be integrated into a broader security framework aimed at increasing user confidence in the city’s taxi service.