In Mexico City, the Environmental Ministry (SEDEMA) amended the rules governing the “Exempt” vehicle verification hologram for hybrid vehicles. Under updated provisions published in the city’s Official Gazette as part of the mandatory verification program for the first half of 2026, hybrid vehicles will no longer be eligible for up to eight years without emissions testing. Instead, newly issued Exempt holograms will be valid for six years and may be renewed only once.

SEDEMA clarified that the new six-year validity period will apply to all Exempt holograms issued from 2026 onward. Vehicles currently holding longer exemptions will transition to the new regime once their existing authorization expires.

The Exempt hologram has historically been one of the most significant incentives for hybrid vehicle ownership in Mexico City. Beyond eliminating periodic emissions testing, it has provided access to tax exemptions and, in some cases, toll discounts. These benefits supported the gradual penetration of hybrid vehicles in the local market following the introduction of the Toyota Prius in 2010.

Parallel changes are being implemented at the state level. Local lawmakers have approved fiscal reforms eliminating permanent exemptions from the annual vehicle registration fee (refrendo) for electric and hybrid vehicles starting in the 2026 fiscal year. The reform amends Article 32 Bis of the Vehicle Control Law and was approved by a majority vote in the state congress, according to the Official Gazette and reporting by ABC Noticias.

Under the new rules, electric vehicles will be eligible for the refrendo exemption only once and only at the time of their initial registration. Hybrid vehicles will no longer qualify for the benefit and will be subject to the same annual fee as internal combustion engine vehicles.

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