Cuba sells 50 cars in first six months of year

18:07, Jul 02 2014
Fidel Roque drives the US-made 1952 Chevrolet car he affectionately named Miss Green, towards home from the village of Isabela de Sagua, 240 km east of Havana.
Fidel Roque drives the US-made 1952 Chevrolet car he affectionately named Miss Green, towards home from the village of Isabela de Sagua, 240 km east of Havana.
A participant sits in a car during the annual classic car exhibition in Havana.
A participant sits in a car during the annual classic car exhibition in Havana.
Drivers wait for customers beside their US-made cars at a private collective taxi stand in Havana.
Drivers wait for customers beside their US-made cars at a private collective taxi stand in Havana.
A car is driven beside a billboard with the image of revolutionary leader Che Guevara in Havana October 8, 2013.
A car is driven beside a billboard with the image of revolutionary leader Che Guevara in Havana October 8, 2013.
A man drives his convertible car beside the Maltese flagged ''Thomson Dream'' cruiser docked at Havana's port December 6, 2013.
A man drives his convertible car beside the Maltese flagged ''Thomson Dream'' cruiser docked at Havana's port December 6, 2013.
A car drives past a Russian army warship docked at Havana Port August 3, 2013.
A car drives past a Russian army warship docked at Havana Port August 3, 2013.
Tourists ride a US-made 1957 Chevrolet Bel-Air convertible car on Havana's seafront boulevard "El Malecon" May 21, 2013.
Tourists ride a US-made 1957 Chevrolet Bel-Air convertible car on Havana's seafront boulevard "El Malecon" May 21, 2013.
A man works to restore his 1950's US-made car at a garage in Havana June 30, 2013.
A man works to restore his 1950's US-made car at a garage in Havana June 30, 2013.
A US-made car, used as a private collective taxi is driven beside a billboard in Havana September 30, 2013.
A US-made car, used as a private collective taxi is driven beside a billboard in Havana September 30, 2013.
People cross a street as a US-made car, used as a private collective taxi is driven as it rains in Havana September 30, 2013.
People cross a street as a US-made car, used as a private collective taxi is driven as it rains in Havana September 30, 2013.
A woman exits a US-made car, used as a private collective taxi during a heavy thunderstorm in Havana September 30, 2013. Collective taxis have established routes around or near Havana, picking up and dropping off passengers along the way.
A woman exits a US-made car, used as a private collective taxi during a heavy thunderstorm in Havana September 30, 2013. Collective taxis have established routes around or near Havana, picking up and dropping off passengers along the way.
A girl rides on the back of a vintage convertible car, as part of her quinceanera (coming-out for 15-year-olds) celebration, in Havana August 25, 2013.
A girl rides on the back of a vintage convertible car, as part of her quinceanera (coming-out for 15-year-olds) celebration, in Havana August 25, 2013.

Cuban dealers sold 50 cars and four motorcycles nationwide in the first six months of the year under a new law that removed limits on auto purchases for the first time in half a century but came with prices so high few people could afford them.

Long-frustrated Cubans welcomed the law that took effect in January until they saw sticker prices were marked up 400 per cent or more, pricing family sedans like European sports cars.

Cuba has said it would invest 75 per cent of the proceeds from new car sales in its woeful public transportation system.

But total sales at the country's 11 national dealerships reached just US$1.28 million (NZ$1.46m) in the first six months of the year, the official website Cubadebate.com reported this week, citing Iset Vazquez, vice president of the state enterprise Corporacion CIMEX.

Before the start of this year Cubans had to request authorization from the government to buy from state retailers, which sell new and second-hand vehicles, usually former rental cars.

Most of the sales this year appeared to be of the second-hand variety considering the average sale price of US$23,759 per vehicle, including the motorcycles.

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A Havana Peugeot dealership was pricing its 2013 model 206 at US$91,000 when the new rules came into effect, and it wanted US$262,000 for the sportier 508.

Such prices drew howls of protest from the few Cubans who could even consider buying a car. Most state workers make around US$20 a month.

The high prices have also been a complaint of foreign businesses and potential investors, who need government permission to import a new or used car without the huge markup.

Cuba only gradually is loosening the auto market. In 2011, it started allowing its people to buy and sell used cars from each other. Before then, only cars that were in Cuba before the 1959 revolution could be freely bought and sold, which is why there are so many US-made, vintage 1950s cars on the streets.

Giant Chevys and Buicks rumble alongside little Soviet-made Ladas, another popular brand dating from the era before 1991 when Moscow was the communist island's main benefactor.

Reuters