Hyundai CEO José Muñoz says Chinese vehicles priced 30% to 40% below rivals in some European markets could put pressure on the US if trade barriers are eased.
Hyundai Motor Company CEO José Muñoz has warned that Chinese automakers could make a significant impact on the US car market if trade barriers and other market-access safeguards are weakened.
Muñoz pointed to the rapid growth of Chinese vehicle brands in Europe, where lower prices have helped them gain market share despite trade measures imposed by the European Union.
He said Chinese vehicles can be priced 30% to 40% below competing models in markets including Italy, Spain and France.
The warning comes as Chinese brands continue to expand in the UK. Chinese-branded vehicles accounted for around 15% of new car registrations in Britain earlier this year, according to data from the Society of Motor Manufacturers and Traders. In the EU, Chinese brands held more than 9% of the market during the first half of 2026, according to the European Automobile Manufacturers’ Association.
Muñoz Points to China’s Rapid Automotive Growth
Muñoz, who previously ran Nissan’s China operations, said he has been impressed by the pace of development within China’s automotive industry.
“The level of innovation, the level of improvement, the technology is unbelievable,” he said.
His concern is that the conditions allowing Chinese manufacturers to expand in Europe could eventually create similar pressure in the United States.
In his view, the US could see Chinese brands gain ground at different levels if restrictions on market access are reduced.
Chinese Vehicles Are Gaining Ground in Europe
Chinese automakers have expanded rapidly across European markets by competing on price and introducing increasingly advanced electric and hybrid vehicles.
Muñoz said some Chinese models are priced 30% to 40% below comparable vehicles in Italy, Spain and France, even after the European Union introduced tariffs and minimum-price commitments on Chinese-built EVs following its finding that Chinese producers benefited from unfair state subsidies.
The UK has taken a different approach and has not imposed equivalent tariffs on Chinese-made EVs.
Muñoz used the UK market as an example of what could happen when fewer trade barriers are in place, noting that Chinese brands have achieved significant market penetration there.
The European Union is also considering “Made in Europe” policies that would establish local-content requirements for EVs sold within the bloc. Such rules could encourage Chinese manufacturers to establish more production capacity inside Europe.
US Tariffs Keep Chinese EVs Largely Out
The US currently maintains tariffs of around 100% on Chinese electric vehicles, effectively preventing large-scale imports of Chinese EVs.
Muñoz said similar conditions would be necessary to limit the impact of Chinese manufacturers if they seek broader access to the US market. He also acknowledged that some level of impact would likely remain.
The issue has also drawn attention from other US automakers. Ford CEO Jim Farley has warned internally that Chinese manufacturers could enter the US market within five to 10 years.
The debate has become more relevant after US President Donald Trump said he would be open to Chinese automakers building vehicles in the United States, provided they manufacture locally and employ American workers.
Hyundai Is Preparing for a More Technology-Driven Market
Hyundai is also working to strengthen its position as vehicle technology becomes increasingly important to competition between global automakers.
The company is developing software-defined vehicles and expanding its use of artificial intelligence, advanced driver assistance systems, and autonomous-driving technology.
Hyundai recently announced that its proprietary driver-assistance software will now arrive in vehicles in late 2029, two years later than its previous target of late 2027.
In the meantime, Hyundai plans to work with NVIDIA to introduce Level 2+ and Level 2++ driver-assistance systems in 2028.
Hyundai says the additional time is needed to collect more driving data and validate the safety performance of its own technology.
Hyundai Wants Greater Control Over Key Technologies
Muñoz said partnerships can help Hyundai accelerate development, but the company ultimately wants to control important technologies internally.
That includes autonomous driving and batteries, two areas he considers central to Hyundai’s long-term strategy.
“We want to internalize,” Muñoz said, while acknowledging that the company may use partnerships temporarily as it develops its own capabilities.
Hyundai is already working with NVIDIA across its autonomous-driving technology strategy. The group is also connected to Motional, the US autonomous-vehicle company.
At its 2026 CEO Investor Day, Hyundai outlined plans to launch or refresh more than 100 models globally by 2030 and target 5.55 million annual global sales. The company is also building a broader software and AI strategy around its future vehicles.
The US Market Faces a Changing Competitive Landscape
Muñoz’s warning comes as Chinese automakers continue to expand internationally and develop increasingly competitive electric, hybrid and technology-focused vehicles.
For now, high US tariffs and other restrictions limit direct competition from Chinese EV imports. But the growing presence of Chinese brands in Europe and the UK is giving global automakers a clearer view of the competitive pressure they could face if market access changes.
For Hyundai, the response involves both preparing for potential changes in global trade and accelerating investment in software, autonomous driving, batteries, and new vehicle technologies.
The US market remains largely protected from direct Chinese EV imports today, but the global expansion of Chinese automakers is changing the competitive landscape that companies such as Hyundai are preparing for.
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