Hyundai CEO Warns Chinese Automakers Could Disrupt US Market

Hyundai Motor CEO Jose Munoz warned that Chinese automakers could eventually reshape the US auto market as they have in Europe unless Washington maintains tariffs and other market-access protections.

Speaking in San Jose, California, Munoz said Chinese vehicles can be 30% to 40% cheaper than competing models in markets such as Italy, Spain and France. Their aggressive pricing has helped Chinese brands gain market share across Europe, putting pressure on established automakers including Hyundai and Volkswagen.

Chinese-branded vehicles accounted for more than 9% of EU car sales during the first half of 2026, according to industry data. Their share reached about 15% of new registrations in Britain, where Chinese electric vehicles are not subject to tariffs similar to those imposed by the European Union.

Munoz said the UK illustrates what could happen in the United States without sufficient safeguards. The EU has imposed tariffs and pricing requirements on Chinese-made EVs after determining that manufacturers benefited from state subsidies. Brussels is also developing “Made in Europe” rules that would establish minimum local-content requirements.

The US currently imposes tariffs of roughly 100% on Chinese electric vehicles, effectively limiting imports. President Donald Trump recently said he would welcome Chinese automakers if they manufactured vehicles in the United States. Ford CEO Jim Farley has also said his company is preparing for the possibility of Chinese brands entering the US market within five to 10 years.

Munoz acknowledged China’s rapid automotive development, describing its advances in innovation and technology as significant.

Separately, Hyundai is taking longer than initially planned to develop its proprietary Level 2++ advanced driver-assistance technology. The company pushed its target for vehicles equipped with its in-house system from late 2027 to late 2029 as it gathers more data and validates safety performance.

Hyundai is meanwhile partnering with Nvidia to introduce Level 2+ and Level 2++ vehicles in 2028. Despite relying on partnerships in the short term, Munoz said Hyundai ultimately intends to develop critical technologies internally, including autonomous-driving systems and batteries, as part of its long-term vertical integration strategy.