Hyundai CEO Warns of Threat from Chinese Cars, Here is Why
Hyundai Motor CEO Jose Munoz has warned that the United States could potentially face a surge of Chinese vehicles, mirroring the situation currently observed in the European market. He noted that this risk could escalate if Washington fails to maintain tariffs and regulations to protect market access.
“So, I believe we can expect something similar to happen in the US, albeit on a different scale, unless there are specific provisions in place,” Munoz stated in San Jose, California, on Thursday, as reported by Reuters.
In recent years, Chinese manufacturers have expanded rapidly across Europe by offering lower-priced vehicles. Munoz noted that the price of Chinese cars in markets such as Italy, Spain, and France can be 30% to 40% cheaper than competing models.
This pressure persists despite the European Union imposing trade barriers on Chinese-made electric vehicles, including tariffs and minimum price commitments. Meanwhile, the United Kingdom, which left the EU in 2020, has not yet implemented similar tariffs.
“The UK, which was once a very strong and profitable market, is now in a situation similar to China. All the best-selling brands come from China because there are no barriers,” said Munlar.
Data from the European Automobile Manufacturers’ Association (ACEA) shows that the market share of Chinese brands in the EU exceeded 9% in the first half of this year. In the UK, Chinese-branded vehicles reached approximately 15% of total new car registrations, according to data from the Society of Motor Manufacturers and Traders (SMMT) earlier this year.
In the US, imports of Chinese electric vehicles are effectively hindered by tariffs of around 100%. Former President Donald Trump previously stated he would welcome Chinese automakers if they built vehicles within the US. Munoz also believes the US automotive industry needs to prepare regulations to suppress the impact of incoming Chinese manufacturers.
Munoz, who previously led Nissan’s operations in China, acknowledged the rapid development of the country’s automotive industry. “The level of innovation, the rate of improvement, and the technology are truly extraordinary,” he said.
On the other hand, Hyundai has postponed the development of its internal Level 2++ driver assistance system until the end of 2029, from an original target of 2027, and is partnering with Nvidia for vehicles featuring Level 2+ and Level 2++ technology by 2028.