Hyundai warns the US may be next in line for a wave of cheaper Chinese EVs

Chinese automakers like BYD are quickly taking over global markets with low-cost electric vehicles, and Hyundai Motor’s CEO Jose Munoz warned the US could be next without safeguards. Hyundai warns of Chinese EVs entering the US Chinese vehicles are already 30% to 40% cheaper than comparable auto brands in some markets, like Italy, Spain, and France, Munoz told Reuters in San Jose, California, on Thursday. That’s with tariffs and other trade barriers Chinese automakers face on imported electric vehicles in Europe. Meanwhile, in the UK, a market that doesn’t have such measures in place and “was a very profitable, very strong market, Munoz said, “has become like China.” “All the top sellers are Chinese because there are no barriers,” he said. Due to the increased competition from China, electric vehicles are more affordable than petrol cars in the UK. According to the most recent data from the UK’s Society of Motor Manufacturers & Traders (SMMT), EVs accounted for 29.8% of new car registrations in August, the second-highest monthly share so far this year. Through August, 355,746 electric vehicles have been registered in the UK, compared to 194,327 hybrid electric vehicles (HEVs), and 598,842 petrol models. However, petrol sales are down 3% this year while EV sales are up 28.6%. Chinese brands are rapidly gaining market share, accounting for over 15% of new car registrations in the UK. In the first eight months of the year, BYD registered 48,265 vehicles in the UK, nearly double the 24,333 registered during the same period in 2025. BYD now accounts for 3.48% of the market through August, up from 1.92% last year. The Dolphin Surf, BYD’s cheapest electric vehicle, starts at just £18,675 on the road in the UK, or about $25,000. The comments follow US President Donald Trump, who said during an interview with Fox News last week that he’d be open to letting Chinese automakers in if the vehicles are built in the US. For now, the US imposes a 100% tariff on EV imports from China, essentially blocking access to low-cost competition. The US also imposes restrictions on connected-vehicle software, batteries, and key minerals from China. Electrek’s Take Hyundai’s CEO isn’t the first to raise the alarm about Chinese electric vehicles entering the US unrestricted. Ford CEO Jim Farley has warned several times that Chinese EVs pose an “existential threat” to Western automakers. During an interview with Fox & Friends in April, Farley said China has enough capacity to build over 50 million vehicles, or enough “to cover all the manufacturing, all the vehicle sales in the US.” Farley warned of the “devastating” economic impact given manufacturing is the “heart and soul” of the US. “We should not let them into our country,” Farley stressed, referring to allowing Chinese EV brands to sell in the US. After flying a Xiaomi SU7, which outsold the Tesla Model 3 in China last year, from Shanghai to Chicago in 2024 and driving it around for six months, Farley said he didn’t want to give it up, while deeming Xiaomi an “industry juggernaut.” Ford, like Hyundai, is betting on more efficient, lower-cost electric vehicles to compete with China. Ford will launch the Fathom pickup in 2027, the first EV based on its new UEV platform, starting at $30,000. Hyundai Motor launched the IONIQ 3 in Europe earlier this year, while Kia sells the EV3 and EV2. While Hyundai has no plans to sell the IONIQ 3 in the US, it does sell the IONIQ 5, which is among the most popular and most affordable in the US, starting at $35,000. Meanwhile, Kia opened orders for the EV3 in the US, its smallest electric SUV. The 2027 Kia EV3 starts at just $29,890. Farley warned employees in July that Ford was preparing to face Chinese automakers in the US within the next 5 to 10 years. While tariffs and other safeguards protect US automakers for now, they still face them in overseas markets. It’s likely only a matter of time before they enter the US as well. FTC: We use income earning auto affiliate links. More. Comments