{"id":8154,"date":"2026-10-06T00:45:18","date_gmt":"2026-10-06T00:45:18","guid":{"rendered":"https:\/\/silvybrand.com\/?p=8154"},"modified":"2026-10-06T00:45:18","modified_gmt":"2026-10-06T00:45:18","slug":"hyundai-ceo-china-ev-us-market-share","status":"publish","type":"post","link":"https:\/\/silvybrand.com\/?p=8154","title":{"rendered":"Hyundai CEO says only a \u2018level playing field\u2019 can minimize damage from China"},"content":{"rendered":"


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There\u2019s been a lot of doom and gloom from the auto industry lately when the subject of China comes up. Automaker CEOs, in particular, warn that allowing low-cost, high-tech Chinese electric vehicles to be sold in the US would effectively spell the end of their businesses.<\/p>\n<\/div>\n

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Hyundai CEO Jos\u00e9 Mu\u00f1oz is not as pessimistic as some of his counterparts. He says he\u2019s confident the right mix of protectionist policies and improvements on the product side can keep China at bay. Even though his company is feeling the squeeze from China, Mu\u00f1oz isn\u2019t ready to throw in the towel. But he also acknowledges that China could flood the US with affordable imports without established protections in place<\/a>.<\/p>\n<\/div>\n

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\u201cAs long as there is a level playing field for everybody,\u201d Mu\u00f1oz said at the reveal of the new 2027 Hyundai Tucson in New York City last week. \u201cThat\u2019s all we ask, right? We compete everywhere in the world, and then we have seen that in the markets where that position is respected, so it\u2019s really good for us.\u201d<\/p>\n<\/div>\n

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Chinese automakers have expanded rapidly in Europe, gobbling up market share and damaging domestic brands like Volkswagen, Volvo, and Mercedes by offering vehicles at much lower prices. US automakers warn the same could be true for them if China were allowed to import its vehicles here.<\/p>\n<\/div>\n

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\u201cWe compete everywhere in the world, and then we have seen that in the markets where that position is respected, so it\u2019s really good for us.\u201d<\/p>\n

\u2014 Jos\u00e9 Mu\u00f1oz<\/cite><\/div>\n<\/div>\n

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Steep tariffs and laws that prohibit the sale of cars with software from China have basically made it impossible to sell Chinese vehicles in the US. But in recent months, the dam appears to be weakening. President Donald Trump has said several times that he would be open to Chinese automakers building manufacturing plants in the US if they hire American workers. And experts across the board believe it\u2019s only a matter of time before China finds a way to sell its cars in the US.<\/p>\n<\/div>\n

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But if Chinese brands eventually set up manufacturing inside North America or enter via partner channels, it\u2019s not clear whether Hyundai has a defensive strategy ready. I asked Mu\u00f1oz whether his company had begun to plan for the eventuality of Chinese imports available in the US market. He said it had not.<\/p>\n<\/div>\n

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\u201cWe don\u2019t develop strategies specifically because of the Chinese or because of other types of consumers, or other types of competitors,\u201d he said. \u201cWe are always trying to do better.\u201d<\/p>\n<\/div>\n

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If Hyundai has any strategy, Mu\u00f1oz added, it\u2019s vertical integration: bringing down costs by making its tech and components. \u201cThis allows us to be more competitive,\u201d he said. \u201cBetter quality over cost.\u201d<\/p>\n<\/div>\n

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\u201cWe don\u2019t develop strategies specifically because of the Chinese or because of other types of consumers, or other types of competitors.\u201d<\/p>\n<\/div>\n<\/div>\n

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Mu\u00f1oz cited Hyundai\u2019s $5.8 billion investment in Louisiana to produce green steel as an example of the company\u2019s efforts to vertically integrate in the US. Hyundai expects the investment to provide better, more competitive, and more environmentally friendly steel. He says the same philosophy applies to software and other technologies that Hyundai wants to develop internally.<\/p>\n<\/div>\n

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\u201cSo there is always room to do better,\u201d he continued. \u201cSo if the Chinese competitor were to enter in the market, we would see what would happen, but I don\u2019t know, I don\u2019t have a crystal ball. I just look around, for example, Europe, and see what has happened, and then you may expect similar type of behaviors.\u201d<\/p>\n<\/div>\n

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Chinese vehicles sold in Europe are on average about 30 percent cheaper than comparable European-made rival models, even when factoring in EU import tariffs. The US has already fallen behind the rest of the world<\/a> when it comes to EV adoption, after Trump and Republicans in Congress eliminated federal subsidies. In Europe, EVs account for over 20 percent of sales; in China, it\u2019s over 60 percent. In the US, it\u2019s less than 6 percent.<\/p>\n<\/div>\n

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Political polarization certainly plays a role in depressing sales, as does inadequate charging infrastructure. But the lack of affordable electric models is regularly cited as the biggest barrier to adoption in the US. On that front, Mu\u00f1oz thinks the US can still catch up.<\/p>\n<\/div>\n

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\u201cI think the American market is the most competitive in the world,\u201d he said, noting that Hyundai still records robust EV sales here. That may be true, but the company\u2019s hybrids are what\u2019s keeping its EV business afloat. Hyundai has added hybrids to a wide range of vehicles, including its top-selling Tucson.<\/p>\n<\/div>\n

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Unlike other automakers, Hyundai hasn\u2019t retreated from EVs. It continues to sell its Ioniq 5 and Ioniq 9 here in the US, as well as a growing number of hybrids. In fact, the Hyundai Group recently surpassed Honda<\/a> to claim second place in US hybrid sales behind Toyota.<\/p>\n<\/div>\n

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Mu\u00f1oz acknowledged that the US was still catching up to China\u2019s dominance in EV batteries. Hyundai operates a battery manufacturing joint venture with SK On in Georgia near its massive Metaplant, where it builds all of its EVs and hybrids<\/a>.<\/p>\n<\/div>\n

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\u201cObviously if you don\u2019t have the critical mass, the volume, it\u2019s very difficult to be competitive,\u201d he said. \u201cOne of the biggest pieces of cost is the battery. That is the key element, right? But there is a lot of production of batteries in the United States with some of the best global manufacturers. So I\u2019m not concerned.\u201d<\/p>\n<\/div>\n

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