Hyundai Motor CEO José Muñoz is warning that Chinese automakers could rapidly gain ground in the United States if existing trade barriers protecting the American auto market are removed.
Speaking to Reuters, Muñoz pointed to what has already happened in parts of Europe, where Chinese brands have expanded by offering highly competitive vehicles at significantly lower prices.
According to Muñoz, Chinese vehicles in markets including Italy, Spain and France can be priced roughly 30% to 40% below competing models.
That price difference is creating growing pressure on established global manufacturers.
Chinese automakers have already captured more than 9% of the European Union car market and around 15% of the United Kingdom market, according to figures cited by Reuters.
The United States remains a much more difficult market for Chinese manufacturers because Chinese-made electric vehicles currently face steep import tariffs and other restrictions.
Muñoz said removing those protections could create a situation similar to Europe, where Chinese brands have rapidly expanded their presence.
However, the Hyundai executive also acknowledged the speed of China’s automotive innovation, describing the country’s manufacturers as highly competitive in areas including electric vehicles, software and manufacturing.
His comments come as the future of Chinese cars in America receives renewed attention ahead of U.S.–China talks.
President Donald Trump recently said he would be open to Chinese automakers building vehicles inside the United States if they established American factories and employed U.S. workers.
The issue could become increasingly important for Detroit automakers as well as companies such as Hyundai, Toyota and Volkswagen as competition from China’s rapidly expanding auto industry intensifies globally.