Trump’s backing of Chinese vehicles challenges Hyundai Motor Group

U.S. President Donald Trump, left, and Chinese President Xi Jinping, shake hands after their U.S.-China summit talks at Gimhae International Airport in Busan, Oct. 30, 2025. AP-Yonhap

U.S. President Donald Trump’s repeated advocacy for investment by Chinese carmakers ahead of his summit with Chinese President Xi Jinping later this week is raising the alarm for Hyundai Motor Group, experts and industry officials said Tuesday.

While Chinese automakers are still viewed as unlikely to enter the U.S. vehicle market in the near term due to lingering regulatory barriers, Trump’s outward support for Chinese investment in U.S. manufacturing could eventually reshape the competitive landscape, particularly in the electric vehicle (EV) sector.

In January, Trump said it would be great if Chinese carmakers built factories in the U.S. and hired more American workers.

Trump’s remarks have unsettled the U.S. auto industry, which has long opposed Washington’s potential move to allow the influx of low-cost Chinese EVs. Industry officials fear Chinese carmakers could leverage their aggressive pricing and advanced battery technologies to rapidly expand their share of the EV market in the U.S.

Hyundai Motor's IONIQ 5 flagship electric vehicle / Courtesy of Hyundai Motor

It remains unclear whether Trump and Xi will discuss the agenda during their upcoming summit in Beijing, but global carmakers remain vigilant over the possibility that Trump will raise the issue at the dialogue table with his Chinese counterpart.

The World Economic Forum left open the likelihood that both sides will discuss whether to enable Chinese EV makers, such as BYD, to enter the U.S. market.

Given BYD is rapidly expanding its global EV market share with its competitive pricing strategy, the firm’s possible entry into the U.S. could pose a significant threat to Hyundai Motor Group, which is focused on expanding sales of its eco-friendly vehicles there.

A staff member dusts a BYD Seagull electric vehicle displayed at the Beijing International Automotive Exhibition, or Auto China, in Beijing, April 26. Reuters-Yonhap

Combined sales of eco-friendly cars, such as hybrids and EVs, from Hyundai Motor and Kia in the U.S. reached 48,425 vehicles in April, up 47.6 percent from the previous year. This accounts for roughly 30 percent of the carmakers’ total vehicle sales there.

Experts argued that Chinese carmakers’ entry in the U.S. would come as a “serious challenge” to Hyundai Motor Group and other global carmakers.

“The Korean automaker may end up losing a huge portion of its eco-friendly vehicle market share in the U.S., once Chinese price-competitive EVs are available for sale there,” said Lee Ho-geun, a professor of automotive engineering at Daeduk University.

However, the auto expert raised doubts over whether Chinese EV makers will be able to maintain their price edge under the U.S. regulatory environment.

“When they assemble products in their home territory, they can gain a price edge by utilizing a stable supply chain there, but this is not the case if they set up production lines in the U.S. and rebuild their entire supply chain for EV sales in the U.S.,” Lee said.

Data shows the rapid rise of Chinese EV makers in the global market. According to data from SNE Research, BYD came in third in global EV sales, excluding China, in the first quarter, outpacing Hyundai Motor Group, which placed its name on the fourth-largest EV maker during the same period.

Industry officials said the possibility of Chinese EVs making inroads in the U.S. will seriously dampen earnings from the U.S.-reliant Hyundai Motor Group.

“Even if the scenario does not look feasible in the short term, global carmakers will have to brace for the worst by diversifying their sales channels and reducing reliance on a certain market,” an industry official said.