The U.S. auto market could eventually face an offensive by Chinese automakers similar to the one seen in Europe. At least, that is the warning issued by José Muñoz, President and CEO of Hyundai Group.
In an interview with Reuters, the executive argued that the United States must maintain certain trade barriers to limit the impact of a potential arrival of Chinese brands.
Rapid influx in Europe
Chinese automakers are rapidly gaining ground in Europe by offering vehicles that are generally cheaper than those from established brands. According to José Muñoz, the price gap reaches 30 to 40 percent in certain markets, notably Italy, Spain and France.
According to data from the European Automobile Manufacturers' Association, Chinese brands accounted for more than 9 percent of new vehicle sales in the European Union during the first half of 2026. Their share reached 15 per cent in the UK, where no surtax comparable to the European Union's has been introduced.
“The UK, which used to be a very strong and very profitable market, has become like China,” said José Muñoz. In his view, the absence of barriers there facilitated the rise of new players.
The European Union already applies additional customs duties on certain electric vehicles made in China. Brussels is also working on drafting rules requiring a minimum proportion of domestic content.
High U.S. tariffs
The United States currently imposes tariffs of 100 percent on Chinese electric vehicles. However, President Donald Trump has expressed openness to their presence on the condition that they are manufactured on U.S. soil.
For José Muñoz, the arrival of Chinese automakers nevertheless appears difficult to avoid. “The impact will definitely be there,” he stated, while emphasizing the need to impose certain market access conditions.
The Hyundai chief also acknowledges the rapid progress made by the Chinese automotive industry. Having managed Nissan's operations in China a decade ago, he says he is impressed by the speed of innovation and technological evolution among the country's manufacturers.
His warning echoes that of Ford. In July, CEO Jim Farley indicated that the company was preparing for a possible arrival of Chinese automakers in the U.S. over the next five to ten years.