Hyundai CEO Warns of Chinese Car Threat in US
Hyundai's top executive warns that without strict trade barriers, the US market could face a similar disruption to Europe from low-cost Chinese vehicles.
Jose Munoz, the chief executive of Hyundai Motor, issued a stark warning on Thursday that the United States risks seeing a flood of inexpensive Chinese automobiles unless it maintains strict trade protections. He pointed to Europe, where Chinese brands have rapidly gained ground by undercutting established rivals on price, as a cautionary example of what could happen in the American market.
Munoz argued that the US must impose conditions on Chinese manufacturers to limit their impact, noting that the country currently blocks most imports with tariffs of around 100%. He emphasized that while the US has high barriers, the situation in countries like the United Kingdom, which lacks similar protections, shows how quickly domestic market share can be eroded by foreign competitors.
European market share shifts dramatically
Data from the European Automobile Manufacturers' Association shows that the share of Chinese-branded cars in the EU rose to over nine percent in the first half of this year. In the UK, which has not adopted the same tariffs as the EU, the figure is even higher, reaching 15 percent of new car registrations. This shift has squeezed the profitability of traditional manufacturers like Hyundai and Volkswagen.
The European Union responded by imposing tariffs and minimum pricing rules on Chinese electric vehicles, citing unfair state subsidies as a reason. Brussels is now developing further regulations requiring a certain percentage of local content for electric vehicles sold in the bloc, effectively forcing Chinese automakers to build factories within Europe. Munoz believes the US needs similar guardrails to protect its own industry.
US barriers remain high but changing
Despite the warnings, the US currently maintains one of the highest tariff rates in the world against Chinese electric vehicles. President Donald Trump recently stated he would welcome Chinese automakers if they chose to build their cars in the United States rather than importing them. This stance suggests a potential shift from outright blocking to a more complex regulatory environment that could still allow foreign brands to enter the market.
Ford CEO Jim Farley has also warned his employees to prepare for the possibility of Chinese brands entering the US within the next five to ten years. Munoz, who previously ran Nissan’s operations in China, acknowledged the rapid technological advancement of Chinese automakers, describing their innovation speed as unbelievable. He stressed that even with current barriers, the impact of Chinese competition is inevitable for US manufacturers.
Hyundai delays own driving tech launch
In a separate development, Munoz addressed the delay in Hyundai’s proprietary advanced driver-assistance system. The company has pushed back the launch of vehicles equipped with its own Level 2++ software from late 2027 to late 2029. The reason cited is the need for more time to collect data and validate safety performance, a standard practice in autonomous driving development.
To bridge the gap, Hyundai is partnering with Nvidia to launch vehicles with advanced driver assistance features in 2028. Munoz explained that while the company prefers to develop its own technology for critical components like batteries, temporary partnerships are a pragmatic way to stay competitive. He noted that vertical integration remains central to Hyundai’s long-term strategy, even if it means relying on external partners for software in the near term.
The source for these insights is GN auto tech/ev: electric vehicle, which reported on Munoz’s comments made in San Jose, California. The remarks highlight the growing tension between global trade policies and the rapid technological evolution of the automotive sector, particularly regarding electric and autonomous vehicles.
