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
Facts Only
Hyundai Motor CEO Jose Munoz stated Chinese EVs are 30% to 40% cheaper than competitors in Italy, Spain, and France.
In the UK, EV registrations accounted for 29.8% of new cars in August.
UK EV sales increased by 28.6% this year, while petrol sales decreased by 3%.
Chinese brands hold over 15% of the UK new car registration market.
BYD registered 48,265 vehicles in the UK in the first eight months of the year.
The BYD Dolphin Surf is priced at £18,675 in the UK.
The US currently imposes a 100% tariff on EV imports from China.
The US restricts Chinese connected-vehicle software, batteries, and key minerals.
Ford CEO Jim Farley stated China has the capacity to build over 50 million vehicles.
Ford plans to launch the Fathom pickup in 2027 starting at $30,000.
Kia is offering the 2027 EV3 in the US starting at $29,890.
Hyundai sells the IONIQ 5 in the US starting at $35,000.
Executive Summary
Western automakers are sounding alarms over the rapid global expansion of low-cost Chinese electric vehicles (EVs), citing the UK as a cautionary example where a lack of trade barriers has allowed Chinese brands to capture over 15% of the market. In certain European markets, Chinese EVs are priced 30% to 40% lower than comparable brands, despite existing tariffs. This price disparity has contributed to a significant shift in consumer behavior, particularly in the UK, where EV sales are rising while petrol sales decline.
While the US currently maintains a 100% tariff on Chinese EV imports and strict software restrictions, industry leaders from Hyundai and Ford describe the long-term threat as existential. To counter this, US and South Korean manufacturers are pivoting toward more affordable models, such as the upcoming Ford Fathom and Kia EV3, aiming for price points around $30,000. However, uncertainty remains regarding whether these efficiency gains can match the scale of Chinese production capacity or if further protectionist measures will be required to maintain domestic manufacturing.
Full Take
The strongest version of this narrative is a warning about industrial displacement: a high-capacity manufacturer is leveraging massive scale and lower costs to disrupt global markets, threatening the economic stability of Western manufacturing hubs.
The narrative relies heavily on "existential threat" framing and the use of the UK as a proxy for a potential US collapse. By juxtaposing the "barrier-free" UK market with the protected US market, the argument creates a sense of inevitable collision. However, the evidence provided is primarily anecdotal—relying on the warnings of CEOs whose primary interest is maintaining market share and securing government protection.
Patterns detected: ARC-0043 Motte-and-Bailey (The strong claim is that Chinese EVs are an "existential threat" to the US economy, while the defended position is simply that they are cheaper in the UK).
This reflects a paradigm of "Economic Nationalism," where market competition is framed not as a driver of innovation, but as a security vulnerability. The unstated assumption is that the "heart and soul" of the US is tied to traditional vehicle manufacturing, ignoring the potential for consumers to benefit from lower prices or the shift toward new software-defined vehicle ecosystems.
If these protectionist barriers hold, the cost is borne by the consumer through higher prices and slower EV adoption. If they fall, the cost is borne by legacy workers in the traditional auto sector.
Bridge Questions:
1. Does the threat stem from the vehicles themselves, or from a legacy manufacturing model that cannot compete on cost?
2. To what extent do these CEO warnings serve as lobbying efforts for continued tariffs?
3. Would US-based manufacturing by Chinese firms solve the economic threat while maintaining the consumer benefit?
Counterstrike Scan: A coordinated campaign would use "Economic Panic" to pressure policymakers into permanent protectionism by framing a commercial competitor as a national security predator. The content aligns partially with this pattern by using high-stakes language ("existential threat," "devastating"), though it remains grounded in reported quotes.