Hyundai CEO José Muñoz is less pessimistic than some auto industry peers about the threat from Chinese electric vehicles. He said Hyundai competes in markets around the world and simply wants a fair competitive environment, but he also cautioned that without protections, the US could face the same disruption Europe has seen, where Chinese brands have sold vehicles at prices roughly 30% lower than comparable European models.
The US currently keeps Chinese vehicles out through steep tariffs and a ban on Chinese automotive software, though political signals have recently suggested that could change. Muñoz acknowledged that Hyundai has not prepared a specific defensive strategy for that possibility. Instead, he emphasized vertical integration, including a $5.8 billion investment in a Louisiana green-steel plant and developing software internally, as the path to lower costs and better quality.
He also expressed confidence about battery supply, pointing to Hyundai's joint venture with SK On in Georgia. Muñoz said the US market is the most competitive in the world and noted that Hyundai's hybrids have helped the company move past Honda to become the second-largest hybrid seller in the US behind Toyota. Still, he acknowledged the US lags far behind in EV adoption, with electric vehicles making up less than 6% of sales compared with more than 60% in China.