The Cuban government has taken a significant step in revamping its automotive policies by publishing new regulations in the Official Gazette. These rules outline the criteria for who can manufacture and assemble vehicles on the island and under what conditions. While this move welcomes new economic players, it enforces a strict system of state authorizations.
These regulations fall under Decree 163/2026 and Resolution 52/2026 from the Ministry of Transport, as released in Official Gazette No. 64. They also update the guidelines for importing, selling, and transferring vehicle ownership in Cuba.
A pivotal change is the government's authorization for state enterprises, foreign investors, and partnerships between state and non-state actors to assemble and manufacture motor vehicles, trailers, and semi-trailers, provided they have the necessary authorization and the activity is included in their corporate purpose.
New Opportunities for Non-State Entities
The decree also allows Cuban non-state legal entities, with prior approval from the Council of Ministers via the Ministry of Transport, to import directly—or through authorized companies—the necessary components for assembling or manufacturing new electric mopeds, motorcycles, tricycles, and automobiles for commercial purposes. These projects must include charging stations powered by renewable energy sources to ensure comprehensive coverage.
However, companies interested in this sector must first meet the technological requirements and procedures set by the Ministry of Transport before starting operations. Only entities approved by the Ministry of Foreign Trade and Foreign Investment can import parts, components, and accessories for vehicle assembly or manufacturing for companies registered with the Ministry of Transport.
Regulatory Oversight and Tax Incentives
A newly established Automotive Evaluation Committee, led by the Minister of Transport and including representatives from various state bodies, will be responsible for approving suppliers, brands, and vehicle models eligible for import, assembly, or domestic manufacturing. This committee will also oversee policy implementation and suggest adjustments.
As part of the announced incentives, the government offers lower tax rates for locally assembled electric vehicles. While imported electric vehicles face a 5% special tax, those assembled by authorized legal entities will incur a 3% tax. Vehicles sold with renewable energy-based charging stations are exempt from taxes.
Adjustments in Road Safety Code
The new regulations also amend the Road Safety Code. Previously, the law prohibited vehicle construction through the assembly of parts and pieces, except for certain state entities. With Decree-Law 122, the regime explicitly permits vehicle manufacturing and assembly from legally acquired components, leaving regulation of this activity to the Council of Ministers.
These regulations are part of a reform first announced by the Cuban government during an extraordinary session of the National Assembly in June. At that time, authorities indicated plans to ease vehicle import restrictions, allow direct importation of electric cars by individuals, and explore the assembly of electric vehicles in Cuba. However, the specifics and legal framework were not defined until now.
With these newly published norms, the government sets the conditions under which state enterprises, foreign investors, and certain non-state economic actors can engage in vehicle manufacturing and assembly on the island.
Understanding Cuba's New Vehicle Assembly Regulations
Who is authorized to assemble and manufacture vehicles in Cuba?
State enterprises, foreign investors, and partnerships between state and non-state actors with the necessary authorization and whose corporate purpose includes this activity are authorized to assemble and manufacture vehicles in Cuba.
What are the tax incentives for electric vehicles assembled in Cuba?
Electric vehicles assembled by authorized legal entities in Cuba are subject to a 3% tax, as opposed to a 5% special tax on imported electric vehicles. Additionally, vehicles sold with renewable energy-based charging stations are exempt from taxes.
How do the new regulations affect the Road Safety Code?
The new regulations amend the Road Safety Code to allow vehicle assembly and manufacturing from legally acquired components, a practice previously restricted to certain state entities.