A Cuban small enterprise, Talleres Albe, based in Santa Clara, has unveiled a collaborative initiative with the Villa Clara government to market electric and hybrid vehicles entirely in Cuban pesos. This innovative move comes at a time when Cuba faces one of its most severe transportation crises in decades.
Last Friday, Canal Caribe reported on this endeavor, which aims to provide businesses, producers, and workers in the region with an alternative to vehicle access amid the country's economic collapse and lack of foreign exchange.
Alberto Yera Lugo, a representative of the company, candidly acknowledged the issue's magnitude. "Currently, companies lack the capacity or liquidity for foreign payments," he stated, highlighting the challenges of importing vehicles under the current system that demands foreign currency payments, even via state entities.
Innovative Business Model for Vehicle Assembly
The plan involves importing parts and components to assemble in Cuba through a cooperative production effort with state industries. The goal is to establish a joint venture that allows the sale of vehicles via electronic channels using the national currency.
"We are collaborating with the government to form a joint venture with the industry to sell to all companies," Yera Lugo explained.
Transportation Crisis Deepens
This announcement coincides with a particularly challenging period for Cubans. Since February, the regime halted the importation of internal combustion vehicles, prioritizing electric and hybrid models, which remain largely unattainable due to exorbitant prices in foreign currency.
Public transportation is experiencing an unprecedented decline. In January 2026, only 42% of the passenger transportation targets were met, while national bus production plummeted from 473 units in 2019 to a mere 12 projected for this year.
Community Impact and Government Challenges
In addition to transportation woes, Cubans face power outages lasting up to 20 hours daily and a severe fuel shortage, forcing many to rely on electric tricycles or private transport for essential travel, including medical visits.
In the informal market, an electric tricycle can cost over $3,800, an unaffordable amount for most Cuban families.
Talleres Albe also commits a portion of its profits to social projects. The company's representative noted recent efforts to renovate an orthopedic ward in a hospital and the donation of 10 electric tricycles to the healthcare system to assist in transporting dialysis patients.
This support is crucial as the Ministry of Transportation acknowledged in March that many kidney patients had to pay for taxis or tricycles out of pocket due to the collapse of state-run medical transport.
Economic Realities and Legislative Changes
While Canal Caribe partly attributed the economic hardships to the Trump administration's tightened sanctions, Cuba's energy and transportation crises are deeply rooted in longstanding structural issues, including lack of investment, declining oil production, and decades of centralized economic control.
Talleres Albe's project aligns with the new vehicular legislation enacted in December 2024, which promotes the import of electric vehicles with reduced tariffs while imposing taxes up to 200% on luxury cars.
Currently, the proposal is still in the planning stages, with no official implementation date. Its success hinges on whether the government will authorize the formation of the joint venture and allow genuine payment mechanisms in Cuban pesos for such transactions.
FAQs About Electric Vehicle Sales in Cuba
Why are Cuban companies struggling to import vehicles?
Cuban companies face challenges importing vehicles due to a lack of foreign currency liquidity and a system requiring payments in foreign currencies through state entities.
What is the significance of Talleres Albe's joint venture plan?
The joint venture plan by Talleres Albe is significant because it aims to assemble and sell electric vehicles in Cuba using national currency, providing an alternative to the current reliance on foreign currency payments.
How does Cuba's new legislation affect vehicle imports?
Cuba's new legislation favors importing electric vehicles with reduced tariffs, while imposing high taxes on luxury cars, which aligns with the government's priority on electric and hybrid models.