By Abhirup Roy and Hyunjoo Jin
SAN JOSE, California/SEOUL, Sept 18 (Reuters) – Hyundai Motor CEO Jose Munoz warned on Thursday that the US could face a related wave of Chinese auto imports that has disrupted Europe’s car market unless Washington maintains tariffs and other market-access safeguards.
Chinese automakers have quickly expanded in Europe, eroding the market share and profitability of established producers including Hyundai and Volkswagen by offering automobiles at considerably decrease costs.
Munoz said Chinese automobiles are 30% to 40% cheaper than rival fashions in some markets, including Italy, Spain and France.
That is despite commerce boundaries including tariffs or minimal pricing commitments that the European Union imposed on Chinese-built electric automobiles after concluding they benefited from unfair state subsidies.
Britain, which left the bloc in 2020, has not launched related tariffs.
“The UK, which in the past was a very profitable, very strong market, has become like China,” he said in San Jose, California. “All the top sellers are Chinese because there are no barriers.”
“So I think we could expect similar things to happen in the US, at different levels, unless there are certain conditions,” he said, referring to measures like the EU’s tariffs and other market-access necessities.
The share of Chinese-branded vehicles bought in the EU rose to more than 9% in the first half of this 12 months, according to knowledge from the European Automobile Manufacturers’ Association. In Britain, the share was 15% of new car registrations, knowledge from the Society of Motor Manufacturers and Traders confirmed earlier this 12 months.
Brussels is also working on “Made in Europe” guidelines that will set minimal native content material limits for electric automobiles bought in the bloc, forcing Chinese automakers to search for factories in the area.
Munoz said the US wants to impose situations on Chinese firms “to be able to minimize the impact.”
“But the impact is going to be there for sure,” he said.
The US successfully blocks imports of Chinese electric automobiles with tariffs of about 100%. President Donald Trump instructed Fox News last week he would welcome Chinese automakers if they constructed automobiles in the nation.
Munoz echoed warnings from Detroit automakers that Chinese manufacturers could finally enter the US market. Ford CEO Jim Farley instructed workers in July that the company was making ready for the chance of Chinese automakers coming into the US within the next 5 to 10 years.
Having run Nissan’s China operations roughly a decade in the past, Munoz said he is impressed by the velocity of the nation’s automotive advances.
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