You’ve seen the photos. Those candy-colored 1950s Chevys and boxy Soviet Ladas clattering down the Malecón. It’s a beautiful time capsule, sure, but it’s also a bit of a lie. If you walked through the Miramar district of Havana today, you wouldn’t just see relics. You’d see brand-new Kia Rios, sleek Mercedes-Benz SUVs, and a surprising number of Chinese electric vehicles humming quietly past the crumbling colonial facades.
The reality of new cars in Cuba has shifted violently in the last 24 months.
For decades, buying a car in Cuba was basically impossible unless you were a diplomat or a high-ranking official. Then came the "reform" of 2014, which technically allowed anyone to buy a car but slapped a 400% markup on the price. Imagine paying $250,000 for a Peugeot 508. It was a joke. A bad one. But as of January 2025, the rules changed again, and for the first time in sixty years, the "insane price" era is actually starting to crack.
The 2025 Pivot: Why Everything Just Changed
On January 1, 2025, a massive wave of new regulations hit the Cuban Official Gazette. Minister of Transportation Eduardo Rodríguez Dávila finally admitted what everyone knew: the old system was broken. The taxes were so high that nobody bought anything, meaning the government wasn't even collecting the tax revenue they wanted for public transit.
Now, the math has changed.
Under the new policy, the price for new cars in Cuba is no longer dictated by a flat, astronomical markup. Instead, it’s based on the acquisition cost plus a commercial margin of up to 30%. For a car that costs $10,000 at the port, the old price would have been $50,000. Under these 2025 rules, that same car should sit around $15,900. It’s still not "cheap" by global standards, especially when the average state salary is less than $30 a month, but it’s a seismic shift for the growing private sector.
Who Is Actually Buying These Cars?
You might wonder who has $16,000 in a country with a crippled economy. The answer lies in the "Mypimes"—the micro, small, and medium-sized enterprises that were legalized in 2021.
These aren't state-run factories. They are private bakeries, construction firms, and logistics companies. They have cash—specifically freely convertible currency (MLC)—and they need transport. Since March 2023, these legal entities have been allowed to import vehicles directly or buy them from state wholesalers like CIMEX or SASA.
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- The Private Entrepreneurs: Owners of successful MSMEs are the primary drivers of the new car market.
- Medical Personnel & Diplomats: Doctors returning from "missions" abroad now get a one-time pass to import a car with significantly reduced duties.
- The "New Rich": There is a visible class of Cubans with family support in Miami or successful private businesses who are moving away from the "Yankee Tanks" toward modern reliability.
It's kinda wild to see a brand-new Toyota Yaris parked next to a 1948 Buick, but that's the Havana of 2026.
The Chinese Connection and the EV Push
If you're looking for American brands, you'll be disappointed. While some U.S. companies have licenses to export to Cuba, the new 2025 regulations made it harder by requiring letters of authorization directly from manufacturers—something brands like Chevrolet or Ford are hesitant to provide due to the ongoing embargo complexities.
Instead, China has filled the vacuum.
BYD and Geely are everywhere. You’ll see the BYD F3 sedan used as high-end taxis and the Geely CK as the standard government fleet car. But the real story is the electric revolution. To combat the chronic fuel shortages that leave Cubans in gas lines for days, the government has slashed taxes on electric vehicles to zero if they are assembled locally.
Importing an EV is now the smartest move a Cuban business owner can make. They don't need gas, and the maintenance is lower. We’re seeing a flood of electric tricycles and small commuter cars from brands like Sany and Enpower. They aren't fancy, but they move.
Where the Market is Still Broken
Honestly, it's not all sunshine and new paint jobs. The "new" prices are still only available in foreign currency. If you only have Cuban Pesos (CUP), you are stuck. The government promised that retired rental cars from the tourism fleet would be sold in CUP, but these are often "beaters" with 300,000 kilometers on the odometer.
The bureaucracy is also a nightmare. Even with the new laws, you have to go through state-authorized importers like Transimport or MCV Comercial (the Mercedes-Benz dealer in Havana). You can't just hop on a boat to Florida, buy a Honda, and sail back. Everything is filtered through the state, which takes its cut at every turn.
What to Watch for in 2026
If you are following the Cuban auto market, keep your eyes on the "effective residency" rules. The government recently updated migration laws, requiring people to spend 183 days a year on the island to keep certain rights. This affects who can own a business, and by extension, who can buy a car.
Also, the infrastructure is lagging. Importing an EV is great, but where do you charge it when the power grid goes out? Private businesses are now being forced to install their own solar charging stations if they want a fleet of electric vans. It's a "build it yourself" economy.
Actionable Insights for Navigating the Cuban Car Market
For those looking at the current landscape—whether for business or out of pure curiosity—here is how the machine actually functions right now:
- Prioritize Electric: If you are a business owner in Cuba, internal combustion is a liability. Between the 35% luxury tax on high-end gas cars and the unreliable fuel supply, the 0% tax on locally assembled EVs is the only logical path.
- Verify the Importer: Do not trust "independent" exporters claiming they can bypass the state system. As of 2025, there are nine authorized entities (like CIMEX, TRADEX, and DIVEP) that MUST handle the paperwork.
- Budget for the "Third Car" Tax: The government has introduced a progressive tax. Your first and second cars are taxed normally. By the third car, you're looking at a 25% surcharge, which increases with every subsequent vehicle.
- Documentation for "Missionarios": If you are a doctor or diplomat finishing a mission, ensure your certification from the Ministry of Foreign Trade is flawless before you attempt to use your one-time import credit. Small clerical errors have seen cars sit in the Port of Mariel for months.
The era of the "Ferrari-priced Kia" is ending, but the road to a normal car market in Cuba is still full of potholes. It's a hybrid system—part socialist control, part emerging capitalist hunger—and it's changing the face of the island one Chinese sedan at a time.