Hyundai Motor CEO Jose Munoz recently cautioned US policymakers about the potential market threat posed by Chinese electric vehicle manufacturers, arguing that maintaining substantial tariffs and other trade barriers is essential to protect the domestic automotive industry.
Munoz pointed to Hyundai’s experience in Europe as a cautionary example. The company has experienced declining market share and reduced profitability in European markets following the aggressive expansion of Chinese EV producers. According to reporting on his comments, Munoz noted that Chinese vehicles are priced 30% to 40% below competing models in certain European markets such as Italy, Spain, and France, despite existing trade barriers including tariffs and minimum pricing commitments that the European Union implemented after determining Chinese manufacturers received unfair state subsidies.
The UK presents a comparative case study for the potential impact of lower trade barriers. Unlike the European Union, the United Kingdom has not imposed significant tariffs or other substantial barriers to Chinese EV imports. During the first half of 2026, Chinese-built vehicles accounted for approximately 15% of UK auto sales, compared to 9% of EU auto sales during the same period. Munoz characterized the UK market transformation as dramatic, stating that the country has shifted to become dominated by Chinese sellers due to the absence of protective trade measures.
During remarks made in San Jose, California, Munoz also acknowledged the competitive advantages of Chinese electric vehicles, describing their level of innovation, improvement, and technology as “unbelievable.” His comments reflect broader industry concerns about Chinese manufacturers’ ability to compete on price and features in markets without restrictive trade policies.
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