Hyundai CEO José Muñoz said the US auto market needs a level playing field in order to limit the damage that low-cost Chinese electric vehicles could cause, speaking at the reveal of the new 2027 Hyundai Tucson in New York City last week. Muñoz said his company asks only for equal treatment, noting that Hyundai competes worldwide and performs well in markets where that principle is respected. His comments come as automakers broadly warn that Chinese EVs could threaten their businesses if allowed into the US.
Chinese automakers have expanded quickly in Europe, taking market share from domestic brands such as Volkswagen, Volvo, and Mercedes by selling vehicles at far lower prices. US automakers have warned the same pattern could repeat here. Chinese vehicles sold in Europe average roughly 30 percent less than comparable European-made models, even after EU import tariffs are factored in. Steep tariffs and laws barring cars with Chinese software have so far kept Chinese vehicles out of the US market, though President Donald Trump has said repeatedly he would be open to Chinese automakers building US plants if they hire American workers, and experts widely believe Chinese brands will eventually find a way in.
Muñoz said Hyundai has not developed a strategy specifically for the possible arrival of Chinese competitors in the US. He said the company instead works continuously to improve rather than tailoring plans to particular rivals or consumer groups. If Hyundai has a strategy, he described it as vertical integration, bringing down costs by producing its own technology and components. He pointed to Hyundai's $5.8 billion investment in Louisiana to produce green steel as an example, saying the company expects the investment to yield better, more competitive, and more environmentally friendly steel. He said the same thinking applies to software and other technologies Hyundai wants to develop internally.
Muñoz said he has no crystal ball about what would happen if a Chinese competitor entered the US market, but he pointed to Europe as a place to watch for similar behavior. On EV adoption, the US lags the rest of the world: EVs make up over 20 percent of sales in Europe and over 60 percent in China, but less than 6 percent in the US, after Trump and Republicans in Congress eliminated federal subsidies. Political polarization and inadequate charging infrastructure also depress US sales, though the shortage of affordable electric models is frequently cited as the biggest barrier.
Muñoz called the American market the most competitive in the world and noted Hyundai still records strong EV sales in the US, though its hybrids are keeping its EV business afloat. Hyundai has added hybrids across a wide range of vehicles, including its top-selling Tucson, and continues selling the Ioniq 5 and Ioniq 9 in the US. The Hyundai Group recently passed Honda to take second place in US hybrid sales behind Toyota. Muñoz acknowledged the US is still catching up to China on EV batteries, and Hyundai runs a battery manufacturing joint venture with SK On in Georgia near its Metaplant, where it builds its EVs and hybrids. He said battery cost is the key element, but that the US has substantial battery production from some of the world's best manufacturers, so he is not concerned.
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