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Hyundai CEO Warns of Potential US Market Influx from Chinese Automakers
Hyundai Motor (KS:005380) CEO Jose Munoz warned on Thursday that Chinese automakers could rapidly penetrate the U.S. market if Washington eases existing trade barriers, according to a report from Reuters. Munoz cited the aggressive and successful expansion of Chinese brands in Europe as a precedent for what could happen in the United States.
European Market as a Case Study
Chinese-branded vehicles have already made significant inroads in Europe, a trend Munoz believes could be replicated. The CEO pointed to data showing that in the first half of the year, Chinese brands accounted for over 9% of new car sales in the European Union and 15% of new vehicle registrations in the United Kingdom.
Even with trade restrictions in place, Munoz noted that Chinese vehicles are selling for 30% to 40% less than comparable models in key European markets such as Italy, Spain, and France, as cited by Reuters. This highlights the intense price competition that established automakers could face.
AdUS Trade Barriers and Tech Delays
The U.S. currently imposes a tariff of approximately 100% on Chinese-made electric vehicles, a measure that has effectively kept them out of the market. However, the political landscape remains a factor, with former President Trump having previously stated he would welcome Chinese manufacturers that build production facilities within the U.S.
In a separate development, Munoz also disclosed that Hyundai is delaying the launch of its proprietary Level 2++ driver-assistance technology. Originally planned for 2027, the rollout has been pushed back to late 2029 to allow for additional data collection and safety validation. Reuters reported that Hyundai plans to partner with Nvidia (NASDAQ:NVDA) in 2028 to co-develop its Level 2+ and Level 2++ systems.
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