The Cuban regime took a new step in reforming its automotive policy by publishing on Tuesday in the Official Gazette the regulations that outline who can manufacture and assemble vehicles in the country and under what conditions. This measure opens the door to new economic actors, albeit under a strict system of state approvals.
The provisions are part of Decree 163/2026 and Resolution 52/2026 of the Ministry of Transport, published in the Official Gazette No. 64, which also update the regulations on the import, marketing, and transfer of ownership of vehicles in Cuba.
One of the most significant changes is that the Government authorizes the assembly and manufacturing of motor vehicles, trailers, and semi-trailers by state-owned enterprises, entities with foreign investment, and joint ventures between state and non-state actors, as long as they have authorization and this activity is included in their corporate purpose.
Moreover, the decree specifies that Cuban non-state legal entities, with prior approval from the Council of Ministers through the Ministry of Transportation, may directly import —or through authorized companies— the necessary components to assemble or manufacture new mopeds, motorcycles, tricycles, and electric cars, intended for their commercialization. The regulation requires that these projects include charging stations powered by renewable energy sources that ensure complete coverage.
However, companies wishing to engage in this activity must first meet the technological requirements and procedures established by the Ministry of Transportation before commencing operations. Furthermore, only entities authorized by the Ministry of Foreign Trade and Foreign Investment will be permitted to import the sets, components, and accessories intended for the assembly or manufacturing of vehicles for the companies previously registered by Transportation.
The regulation also establishes a Motor Vehicle Evaluation Committee, chaired by the Minister of Transport and composed of representatives from various state agencies. This body will be responsible for approving suppliers, brands, and models of vehicles that can be marketed in Cuba through importation, assembly, or domestic manufacturing, as well as supervising the implementation of policy and proposing adjustments.
As part of the announced incentives, the Government establishes a lower tax burden for electric vehicles assembled in the country. While imported electric vehicles will be subject to a special tax of 5%, those assembled by authorized legal entities will be taxed at 3%. There is even an exemption from the tax for those sold alongside charging stations based on renewable energy.
The new regulations also amend the Traffic Safety Code. Until now, the legislation prohibited the construction of vehicles through the assembly of parts and components, except for certain state entities. With Decree-Law 122, the regime expressly authorizes the manufacture and assembly of vehicles using legally acquired components, leaving the regulation of this activity in the hands of the Council of Ministers.
A measure announced since June
The provisions published this Tuesday elaborate on one of the reforms announced by the Cuban government during the extraordinary session of the National Assembly held in June of this year.
At that time, the authorities announced that they would relax the restrictions on vehicle imports, allow the direct import of electric cars by individuals, and open the possibility of assembling electric vehicles in Cuba. However, they had not defined the requirements or the legal framework to do so.
With the publication of these regulations, the Government specifies those measures and establishes the conditions under which state-owned enterprises, foreign investors, and certain non-state economic actors will be able to participate in the manufacturing and assembly of vehicles on the island.
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