Finauto International Ltd., the official Italian distributor of brands like KIA and SsangYong in Cuba, has released an updated catalogue for vehicles available in the 2025 market. The listed prices include VAT but exclude registration and transportation fees, with potential variations based on vehicle configuration.
The Cuban government has introduced new regulations regarding the import, sale, and transfer of vehicles, aiming to modernize the automotive fleet and alleviate the ongoing "transportation crisis" affecting the population. These regulations, published in Gazette No. 128 of 2024, became effective on January 1, 2025. However, despite these regulatory changes, prices remain unaffordable for most citizens.
Highlighted Models in the Finauto Catalogue
The following are some standout models from Finauto's catalogue:
Family and Luxury Cars:
KIA Sorento (Gasoline 2500 cc): €37,000 (around $39,800 USD).
KIA Carnival (Gasoline 3470 cc): €33,000 (around $35,500 USD).
KIA Niro HEV (SmartStream G1.6 Hybrid): €32,000 (around $34,400 USD).
Compact Models:
KIA Picanto MT (Gasoline 1200 cc): €13,000 (around $14,000 USD).
KIA Picanto AT (Gasoline 1200 cc): €13,500 (around $14,500 USD).
KIA Picanto GT (Gasoline 1200 cc): €16,500 (around $17,700 USD).
KIA Soluto MT (Gasoline 1398 cc): €14,500 (around $15,600 USD).
KIA Soluto AT (Gasoline 1398 cc): €15,500 (around $16,700 USD).
KIA Stonic (Gasoline 1398 cc): €16,500 (around $17,700 USD).
Electric Vehicles:
KIA EV5: €32,000 (around $34,400 USD).
KIA EV6: €48,000 (around $51,600 USD).
KIA EV9 (Electric AWD): €54,000 (around $58,100 USD).
Other Models from SsangYong (KGM):
KGM Tivoli G16DF: €21,900 (around $23,600 USD).
KGM Actyon G15GDI Turbo: €35,900 (around $38,600 USD).
KGM Torres G15GDI Turbo: €33,500 (around $36,000 USD).
KGM Korando G15GDI Turbo: €27,500 (around $29,600 USD).
KGM Rexton G200TR GDI Turbo: €38,000 (around $40,900 USD).
KGM Musso G200TR GDI Turbo: €29,900 (around $32,200 USD).
The Economic Disparity Challenge
Despite promises of regulatory easing, vehicle prices remain beyond reach for the average Cuban. For instance, a compact model like the KIA Picanto MT is priced at €13,000 (approximately $15,900 USD). To put this in context, the average monthly salary in Cuba is about 3,000 pesos (roughly $10 USD), meaning it would take over 100 years of work to afford a basic vehicle.
New Regulatory Framework
The new regulations include:
- Reducing commercial margins to 20% for state entities.
- Offering preferential tariffs of 10% for electric and fuel-efficient vehicles, while internal combustion vehicles face rates up to 30%.
- Providing incentives for the importation of electric vehicles and the development of charging infrastructure.
- Allowing vehicle transfers between individuals and legal entities.
Additionally, the sale of used vehicles from the tourism sector in national currency is prioritized, although these prices will also be determined by the secondary market. While these reforms are a step toward modernizing the automotive fleet, current prices continue to hinder accessibility for the majority of the population.
Finauto's Historical Context and Recent Developments
Established in 1994, Finauto began operations in Cuba in 1995, focusing on selling various types of transportation, such as light commercial vehicles, trucks, and buses, mainly targeting the tourism sector. Recently, Finauto has introduced Chinese-made electric cars into the Cuban market, aimed at the emerging private sector. These vehicles, branded Jin Ma J2-P, offer a range of 100 to 210 kilometers and are available in passenger, refrigerated, and open cargo variants, with prices ranging from €8,900 to €11,950.
The headquarters of Finauto in Cuba is located at Calle 182 # 1311, between 13 and 15, Siboney district, Playa municipality, Havana.
Understanding Cuba's Vehicle Market Challenges
Why are car prices in Cuba so high?
Car prices in Cuba are high due to various factors, including high import tariffs, limited supply, and a monopolized distribution market controlled by the state. These factors, combined with the low average income, make vehicles largely unaffordable for most Cubans.
What are the new regulations for vehicle importation in Cuba?
The new regulations include reduced commercial margins for state entities, preferential tariffs for electric and fuel-efficient vehicles, and increased flexibility in vehicle transfers among individuals and legal entities. These measures aim to modernize the automotive sector and ease the transportation crisis.
How do these regulations affect the average Cuban citizen?
While the regulations aim to improve accessibility, the high costs of vehicles continue to make them unattainable for the average Cuban, whose salary is significantly lower than what is needed to purchase a car.