Hyundai CEO Warns of Chinese Auto Influx to US if Tariffs Ease, Reuters Reports

Hyundai Motor (KS:005380) CEO Jose Munoz has warned that Chinese automakers could quickly establish a significant presence in the U.S. if current trade barriers are lowered, according to a Thursday report from Reuters. The executive pointed to the rapid market share gains by Chinese brands in Europe as a potential model for what could happen in the American market.

The European Precedent

Munoz highlighted the competitive pressure in Europe, where Chinese-branded vehicles have already made substantial inroads. According to data cited by Reuters, these brands captured key market share in the first half of the year:

• More than 9% of new-car sales in the European Union.
• 15% of new vehicle registrations in the United Kingdom.

Even with European trade restrictions in place, Chinese vehicles are reportedly being priced 30% to 40% below competing models in markets such as Italy, Spain, and France, Munoz said.

U.S. Market Protected by Tariffs

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The U.S. auto market is currently shielded from this direct competition by significant trade protections. Washington imposes tariffs of approximately 100% on electric vehicles imported from China, a barrier that has effectively kept them out of the market.

The Reuters report also noted that former President Donald Trump has indicated he would be open to Chinese automakers that establish manufacturing plants within the U.S.

Hyundai Delays Advanced Driving Tech

In a separate development, Munoz announced a delay for Hyundai's proprietary Level 2++ driver-assistance technology. The system's launch has been pushed to late 2029 from its original 2027 target.

The company cited the need for more time to collect data and perform safety validations for the delay. Hyundai plans to collaborate with Nvidia (NASDAQ:NVDA) on its Level 2+ and Level 2++ systems starting in 2028, Reuters reported.