The measures include odd- and even-numbered vehicles to use the roads in alternation until the pollution levels drop.
The unusually high levels of contamination means “people suffer from breathing problems” said the deputy mayor Marta Higueras.
Other measures include temporary bans of parking in the city centre for non-resident cars as well a reduction of speed limits put in place.
Drivers caught flouting the measures will face a fine of up to 90 Euros.
Madrid as well as other capital cities around the world are considering a ban on diesel cars by 2025.