Hyundai CEO Jose Munoz told Reuters on Thursday that Chinese automakers could devastate US auto margins the same way they have across Europe — unless Washington keeps tariffs and market-access restrictions firmly in place. Munoz ran Nissan’s China operations for roughly a decade before taking the Hyundai CEO role. He has seen this pattern up close.
What Munoz Said About Chinese Cars in Europe
Chinese vehicles are running 30 to 40 percent cheaper than competing models in Italy, Spain and France, Munoz said — and that’s with EU tariffs and minimum-pricing rules already in effect. The undercutting is happening even with the guardrails on.
Britain shows what happens without them. The UK left the EU in 2020 and never matched Brussels’ tariff levels on Chinese-built EVs. Munoz was blunt about the result. “The UK, which in the past was a very profitable, very strong market, has become like China. All the top sellers are Chinese because there are no barriers.”
Chinese-branded cars took more than 9 percent of EU sales in the first half of 2026 — that’s the European Automobile Manufacturers’ Association figure. Britain’s number is worse. The Society of Motor Manufacturers and Traders put Chinese brands at 15 percent of new UK registrations earlier this year.
What the Hyundai CEO Wants From Washington
Munoz isn’t calling for a complete block on Chinese vehicles entering the US. His position is more nuanced — he wants Washington to attach specific conditions to any Chinese market entry “to be able to minimize the impact,” while acknowledging plainly that “the impact is going to be there for sure.”
Ford CEO Jim Farley has made a similar argument, telling employees in July that Chinese brands could realistically reach US shores within five to ten years. Hyundai CEO Munoz put a comparable timeline on the risk, warning it could arrive “at different levels” from what Europe experienced but following the same basic pattern.
Self-Driving System Pushed Back to 2029
The China warning wasn’t the only news from Munoz on Thursday. He confirmed Hyundai’s in-house Level 2++ driver-assistance system — pitched as comparable to Tesla’s Full Self-Driving software — has been delayed from late 2027 to late 2029. A two-year slip.
Hyundai attributes the delay to safety validation, not a technical failure. The company says it needs more time gathering real-world data before the system ships to customers. That’s a standard explanation for this kind of delay, and it may well be accurate — but the timing is awkward given how publicly Hyundai positioned the system as a near-term Tesla rival.
US Manufacturing Expansion Still on Track
Separate from the software timeline, Hyundai’s US manufacturing push is still on track. Munoz confirmed the target — 500,000 additional units of North American production capacity by 2030, domestic parts sourcing above 80 percent from roughly 60 percent today.
The Hyundai CEO credited existing US tariff policy with accelerating that buildout. The Alabama-built Santa Fe is his go-to example — a model that demonstrates localization already pays off under current trade rules. The implicit message is that if those tariffs disappear, the economics of building in America change.
FAQ
What did the Hyundai CEO say about Chinese cars in the US?
Jose Munoz warned Chinese automakers could undercut US rivals on price the same way they have in Europe — unless tariffs and market-access rules stay in place.
How cheap are Chinese cars in Europe compared to rivals?
Munoz said 30 to 40 percent cheaper in markets like Italy, Spain and France — even with EU tariffs already in effect.
What happened to UK car sales after Brexit?
No EU-level tariffs on Chinese vehicles meant Chinese brands grabbed 15 percent of new UK registrations. Munoz pointed to Britain as the example Washington should avoid repeating.
Why did Hyundai delay its self-driving system?
Hyundai pushed its Level 2++ driver-assistance system from late 2027 to late 2029 for safety validation and data gathering — not a technical problem according to the company.
Is Hyundai still building more factories in the US?
500,000 additional units of North American production by 2030 is still the target. Domestic parts sourcing going from 60 percent to above 80 percent is also still the plan.
Has anyone else raised the same concern about Chinese cars in the US?
Ford CEO Jim Farley told his own employees in July that Chinese brands could realistically be selling in America within five to ten years.
