Hyundai CEO Warns US Faces Chinese Auto Influx Without Tariffs

Hyundai Motor CEO Jose Munoz warned on Thursday that the United States could face a wave of Chinese auto imports that has disrupted Europe’s car market unless Washington maintains its current tariffs and other market safeguards.

European Market Serves as a Warning

Speaking in San Jose, California, Munoz pointed to the rapid expansion of Chinese automakers in Europe, where they have eroded the market share of established manufacturers by offering vehicles at significantly lower prices. He noted that Chinese vehicles are 30% to 40% cheaper than competing models in some European countries.

According to industry data, this price advantage has had a substantial impact:

• The share of Chinese-branded cars sold in the EU rose to more than 9% in the first half of this year.
• In the United Kingdom, which has not imposed tariffs similar to the EU's, Chinese brands accounted for 15% of new car registrations.

"The UK, which in the past was a very profitable, very strong market, has become like China," Munoz said, as reported by Reuters. "All the top sellers are Chinese because there are no barriers."

Implications for the U.S. Market

Ad

Munoz stated that the U.S. could "expect similar things to happen" without protective measures. The U.S. currently has tariffs of about 100% that effectively block imports of Chinese-made electric vehicles. The warning echoes sentiments from other industry leaders, including Ford CEO Jim Farley, who has said his company is preparing for Chinese automakers to enter the U.S. market.

Despite the competitive threat, Munoz expressed admiration for the rapid advancement of China's auto industry. Having previously run Nissan's China operations, he described the level of innovation and technology as "unbelievable."

Hyundai's Technology Strategy

Separately, Munoz confirmed that Hyundai is delaying the launch of its proprietary Level 2++ advanced driver-assistance system, which is comparable to Tesla's Full Self-Driving system. The launch has been pushed back from late 2027 to late 2029 to allow more time for data collection and safety validation.

In the interim, Hyundai is partnering with Nvidia to launch vehicles with Level 2+ and Level 2++ systems in 2028. Munoz stressed that the company's long-term strategy remains focused on vertical integration. "For relevant technologies like batteries, we want to have our own technology," he said.