Believe it or not, only 50 cars and four motorcycles were sold in Cuba for first half of the year. Auto dealerships didn't sell a lot of cars according to Cuban officials because of a new law that was recently passed.
Total sales only reached $1.3 million. This is despite the law that allows citizens to buy vehicles even without a special permit. This change came after decades but unfortunately, didn't bring a lot of sales for the automotive industry.
Main reason for the low sales is the high price of the vehicles in Cuba compared to other countries. If in the UK a Peugeout car is $53,000, the model costs about five times at $262,000 in Havana.
Another example is a Kia Rio hatchback that is listed at $42,000 in Cuba. This particular car costs only a third of that in the United States, with a $13,600 price tag. The difference between the prices is quite large Cubans couldn't really afford a car.
When the new law was made official last December 2013, Cubans were delighted to know they are free to buy cars but are frustrated with the price. Sure, permits are no longer needed but no one would be able to afford a car that easily.
It's not as if the salaries of the people are high in Cuba. Most people in the country earn only $20 each month. There really is no way for most Cubans to afford a vehicle--not even a motorcycle.
The $1.3 million sales from the 50 vehicles mean average price is $23,800 per car. It's not clear what the auto dealerships have to say about the issue.
The new law could have been a good thing but Cubans were left frustrated. A family car with a price of a European sports car is impossible to afford for the average Cuban.
Official reason for the high price average has not been disclosed but the Cuban authorities said proceeds of the car sales, at least 75% of it, would be invested in improving the public transportation system. It's a good thing if that really is the case but the government better live up to its promise of a more efficient transport system for every Cuban.
Cuba's population is now around 11 million. There are only 11 auto dealerships selling cars and motorcycles in the country according to Cubadebate, a government news website. These dealers also sell used cars for a lower price but only a few are buying. Additionally, sales of used cars among individuals are now allowed in Cuba.
