Key facts
- Hyundai Motor CEO Jose Munoz warned of a potential surge in Chinese vehicle imports to the US.
- Munoz cited Chinese vehicles being 30%-40% cheaper in some European markets.
- Chinese-branded cars hold over 9% market share in the EU and 15% in Britain.
- The US currently imposes tariffs of about 100% on Chinese electric vehicles.
- Hyundai delayed its in-house Level 2++ advanced driver-assistance system launch to late 2029.
- Hyundai plans to partner with Nvidia for Level 2+ and Level 2++ equipped vehicles in 2028.
Hyundai Motor CEO Jose Munoz warned on Thursday that the US faces a potential influx of Chinese automobiles, mirroring the disruption seen in Europe's car market, unless Washington maintains tariffs and other market-access safeguards. Chinese automakers have significantly expanded their presence in Europe, offering vehicles at substantially lower prices, which has eroded the market share and profitability of established manufacturers like Hyundai and Volkswagen.
Munoz stated that Chinese vehicles are 30% to 40% cheaper in some European markets, despite EU tariffs and minimum pricing rules aimed at countering unfair state subsidies. He noted that Britain, which has not imposed similar tariffs, has seen Chinese brands become top sellers. Munoz believes similar trends could occur in the US without protective measures.
The share of Chinese-branded cars in the EU market reached over 9% in the first half of the year, while in Britain, it accounted for 15% of new car registrations. The EU is also developing "Made in Europe" rules to set minimum local content requirements for electric vehicles, potentially pushing Chinese automakers to establish factories within the region.
Munoz indicated that the US needs to implement conditions on Chinese companies to mitigate the impact, acknowledging that some impact is inevitable. The US currently imposes approximately 100% tariffs on Chinese electric vehicles. President Donald Trump has previously stated he would welcome Chinese automakers if they manufactured vehicles within the US.
Echoing concerns from Detroit automakers, Munoz suggested Chinese brands could enter the US market within five to ten years. He expressed admiration for the rapid advancements in China's automotive sector, citing impressive innovation, improvement, and technology.
Separately, Munoz addressed delays in Hyundai's in-house Level 2++ advanced driver-assistance system, comparable to Tesla's Full Self-Driving. The company has pushed back the launch to late 2029 from late 2027 to allow for more data collection and safety validation. Hyundai plans to partner with Nvidia for vehicles equipped with Level 2+ and Level 2++ systems in 2028, but ultimately aims for vertical integration in developing its own self-driving technology and battery capabilities, as evidenced by its ownership of US autonomous-vehicle firm Motional.