Key Takeaways
- Hyundai CEO warns Chinese automakers could expand rapidly in the U.S.
- Munoz urges U.S. market protections to limit Chinese vehicle competition.
- Hyundai delays its in-house advanced driver-assistance technology launch to 2029.
Hyundai Motor CEO Jose Munoz warns Chinese automakers could rapidly expand in the U.S. if Washington removes tariffs and other protections, citing their lower prices and growing European market share.
Munoz calls for U.S. market conditions
Chinese automakers have expanded quickly across Europe, putting pressure on established manufacturers such as Hyundai and Volkswagen by selling vehicles at significantly lower prices.
Munoz says Chinese vehicles are 30% to 40% cheaper than competing models in some markets, including Italy, Spain and France. He argues the U.S. could face similar pressure without measures that limit market access.
“The UK, which in the past was a very profitable, very strong market, has become like China,” Munoz said in San Jose. “All the top sellers are Chinese because there are no barriers.”
“So I think we could expect similar things to happen in the U.S., at different levels, unless there are certain conditions,” he said.
The share of Chinese-branded vehicles sold in the European Union rose above 9% in the first half of 2026, according to the European Automobile Manufacturers’ Association. Chinese brands accounted for 15% of new car registrations in Britain, according to data from the Society of Motor Manufacturers and Traders cited by Reuters.
U.S. tariffs keep Chinese EVs out
The U.S. currently applies tariffs of about 100% on Chinese electric vehicles, effectively blocking most imports. President Donald Trump said last week that he would welcome Chinese automakers if they built vehicles in the United States.
The Hyundai CEO says the U.S. should impose conditions on Chinese companies “to be able to minimize the impact.”
“But the impact is going to be there for sure,” the Hyundai CEO said.
His warning follows similar concerns from Detroit automakers. Ford CEO Jim Farley told employees in July that the company was preparing for the possibility of Chinese automakers entering the U.S. within the next five to 10 years.
Munoz, the Hyundai CEO who previously ran Nissan’s China operations, says Chinese automakers have made rapid technological gains.
“The level of innovation, the level of improvement, the technology is unbelievable,” he said.
Hyundai delays in-house driver technology
Munoz also said Hyundai needs additional time to develop and validate its own advanced driver-assistance technology. The company has pushed back the planned launch of vehicles using its proprietary Level 2++ system to late 2029 from late 2027.
Hyundai is working with Nvidia to launch vehicles equipped with Level 2+ and Level 2++ systems in 2028. The partnership is intended to help the automaker advance the technology while it continues developing its own system.
“I don’t like delaying anything,” Munoz said. “If you’re humble, you realize your technology is not good, maybe you need to try a partnership.”
Munoz said Hyundai ultimately intends to develop its own autonomous-driving and battery technologies. The company may use partnerships or outside suppliers temporarily, but plans to keep control of technologies it considers strategically important.
“We want to internalize,” he said. “We may buy things here or there, or have partnerships temporarily, but for relevant technologies like batteries, we want to have our own technology.”
Hyundai Motor Group also owns U.S. autonomous-vehicle company Motional.
