Hyundai CEO Warns Chinese Cars Could Surge in US Without Trade Barriers

Post by : Saif

Hyundai Motor CEO Jose Munoz has warned that Chinese automakers could quickly expand in the US market if Washington removes trade barriers and other protections.

Speaking in San Jose, California, Munoz said the US could experience a situation similar to Europe, where Chinese vehicle brands have gained market share by offering cars at significantly lower prices.

He said Chinese vehicles are around 30% to 40% cheaper than competing models in some European markets, including Italy, Spain and France.

Europe Shows the Impact of Chinese Car Growth

Chinese automakers have expanded rapidly across Europe in recent years. Their growing presence has put pressure on established companies such as Hyundai and Volkswagen, particularly through lower-priced electric vehicles.

The European Union has introduced tariffs and minimum pricing commitments on Chinese-made electric vehicles after determining that government subsidies gave Chinese producers an unfair advantage.

Munoz pointed to Britain as another example. He said the UK has fewer trade barriers for Chinese vehicles and that Chinese brands have gained a strong position in its car market.

Chinese-branded vehicles accounted for more than 9% of new cars sold in the European Union during the first half of 2026, according to industry data cited in the report. In Britain, Chinese brands represented about 15% of new car registrations earlier this year.

Hyundai CEO Calls for US Market Conditions

Munoz said Washington should establish conditions for Chinese companies seeking to enter the US market.

He pointed to European tariffs and other market-access requirements as examples of measures that could limit the impact of Chinese competition on domestic and established international automakers.

The US currently places tariffs of about 100% on Chinese electric vehicle imports, effectively keeping most Chinese-made EVs out of the American market.

US President Donald Trump has also said he would welcome Chinese automakers if they manufacture vehicles inside the United States.

Read more: Hyundai South Korean Union Stages First Full Strike in 10 Years Over Pay

Chinese Technology Gains Attention

Munoz, who previously led Nissan's China operations, said he has been impressed by the speed of China's automotive development.

He highlighted advances in technology, innovation and vehicle improvement as areas where Chinese automakers have made significant progress.

His comments reflect growing concerns among established automakers about the possibility of Chinese companies entering the US market with lower-cost vehicles and advanced technology.

Hyundai Delays In-House Driver Assistance System

Hyundai is also taking additional time to develop its own advanced driver-assistance technology.

The company has delayed the planned launch of vehicles using its proprietary Level 2++ driver-assistance system until late 2029. The previous target had been late 2027.

Munoz said Hyundai needs more data and additional safety validation before launching the technology.

In the meantime, Hyundai is working with Nvidia to introduce vehicles equipped with Level 2+ and Level 2++ systems in 2028.

Hyundai Plans to Develop Key Technologies

Despite the partnership with Nvidia, Hyundai intends to continue developing important technologies internally.

Munoz said the company wants to maintain control over key areas such as batteries and future self-driving technology. Partnerships and outside purchases may be used when needed, but the long-term strategy remains focused on developing important technologies within the Hyundai group.

The developments highlight two major challenges facing Hyundai: increasing competition from Chinese automakers and the need to accelerate its own technology development while maintaining safety standards.

#trending #latest #Hyundai #HyundaiMotor #JoseMunoz #ChineseCars #ChineseAutomakers #AutoIndustry #ElectricVehicles #EVs #USAutoMarket #AutomotiveNews #Nvidia #SelfDriving #DriverAssistance #GlobalAutoIndustry #CarIndustry