Hyundai Motor chief warns US faces Chinese auto onslaught without trade barriers

Hyundai Motor President Jose Munoz warned Friday that the rapid market inroads Chinese automakers have made in Europe could be replicated in the United States if American trade protections are weakened. With Chinese vehicles undercutting rivals by 30 to 40 percent in some European markets, he said the US must maintain its tariffs and market-entry conditions.

Speaking in an interview with Reuters, Munoz said, "Without protections such as tariffs or market-entry requirements, the US could face the same Chinese onslaught as Europe."

He added that Chinese vehicles are 30 to 40 percent cheaper than competing models in some markets, including Italy, Spain and France.

Despite the EU imposing additional tariffs on Chinese-made electric vehicles and erecting trade barriers such as minimum-price commitments, Chinese brands have continued to expand their presence. Chinese brands accounted for more than 9 percent of vehicles sold in the EU in the first half of this year, according to the European Automobile Manufacturers' Association. In the United Kingdom, Chinese brands made up 15 percent of new vehicle registrations.

Munoz singled out the UK, which has not introduced separate additional tariffs, as a cautionary example. "The UK, which used to be a very profitable and strong market, has become like China," he said. "Because there are no barriers, all the cars that sell well are Chinese."

He went on to say that if the US allows Chinese automakers to enter the market, it must attach certain conditions. Imposing requirements on Chinese companies would "minimize the impact," he said, but added, "There will definitely be some impact."

The US currently imposes tariffs of around 100 percent on Chinese-made electric vehicles, in effect blocking their direct import. President Donald Trump said in a recent Fox News interview that he would welcome Chinese automakers entering the US market if they manufacture their vehicles there.

Munoz spoke highly of the pace of technological advancement among Chinese automakers. Drawing on his experience leading Nissan's China operations about a decade ago, he said, "The level of innovation, the level of improvement, the technology — it's hard to believe."

Munoz also addressed delays in Hyundai Motor Group's development of autonomous driving and advanced driver-assistance systems.

The group has pushed back the target launch date for vehicles equipped with its in-house Level 2++ driver-assistance software by about two years, from late 2027 to late 2029, saying it needs more time to accumulate sufficient driving data and verify safety.

Before its own technology is ready, the company will also draw on its partnership with Nvidia. Hyundai Motor plans to release vehicles featuring Level 2+ and Level 2++ capabilities developed in collaboration with Nvidia in 2028.

"I don't like to delay anything," Munoz said. "But if you are humble, you realize your technology is not good enough, and you may need to try a partnership."

He made clear, however, that collaboration with outside partners is a bridge measure until the company develops its own technology. Hyundai Motor Group also owns Motional, a US-based autonomous driving specialist.

"We want to bring it in-house," Munoz said. "We can buy some technology or have temporary partnerships, but for important technologies like the battery, we want to have our own."