Hyundai Motor (005380.KS), opens new tab CEO Jose Munoz cautioned on Thursday that if Washington does not uphold tariffs and other market-access measures, the US may experience a similar flood of Chinese auto imports that has devastated the European auto market.
By delivering cars at far lower rates, Chinese automakers have quickly grown in Europe, undermining the market share and profitability of well-known manufacturers like Hyundai and Volkswagen (VOWG.DE).
In certain areas, such as Italy, Spain, and France, Chinese cars are 30% to 40% less expensive than competing models, according to Munoz.
This is true even if the European Union imposed trade restrictions on Chinese-made electric vehicles, such as tariffs or minimum pricing obligations, after determining that they benefited from improper state subsidies.
Similar levies have not been imposed by Britain, which departed the bloc in 2020.He stated in San Jose, California, “The UK, which was once a very strong and profitable market, has become like China.” “All the top sellers are Chinese because there are no barriers. “Therefore, unless there are particular criteria, I believe we may expect similar things to happen in the US, at different levels,” he added, alluding to policies like the EU’s tariffs and other requirements for market access.
According to figures from the European Automobile Manufacturers’ Association, the proportion of Chinese-branded vehicles sold in the EU increased to over 9% in the first half of this year. According to figures released earlier this year by the Society of Motor Manufacturers and Traders, the percentage was 15% of new car registrations in Britain.
