South Korea leading automotive player Hyundai Motor Group (005380.KS) is facing a serious threat to its US market share after President Donald Trump repeatedly called for Chinese investment, experts said on May 12, The Korea Times reports.

The move signals a potential shift in Washington’s trade priorities that could see low-cost Chinese electric vehicles (EVs) flood the American market. While Hyundai and Kia have aggressively expanded their green car sales, a deal between Trump and Xi Jinping allowing Chinese factories on US soil would undercut the South Korean firm’s price competitiveness and jeopardise its standing in the US EV race.

Trump stated in January that Chinese carmakers should build US plants and hire American workers. US industry officials fear Chinese firms will use aggressive pricing and advanced battery tech to seize the EV segment. While the agenda for the upcoming summit in Beijing remains unconfirmed, the World Economic Forum suggested the two leaders may discuss allowing Chinese makers like BYD into the US.

Hyundai and Kia sold 48,425 eco-friendly cars in the US in April. This was a 47.6% y/y increase. Green cars now make up 30% of the group’s total US sales. "The Korean automaker may end up losing a huge portion of its eco-friendly vehicle market share in the US, once Chinese price-competitive EVs are available for sale there," said Lee Ho-geun, an automotive engineering professor at Daeduk University. Lee noted that Chinese firms might struggle to keep their price edge if they have to rebuild supply chains in the US rather than using their domestic network.

SNE Research data shows BYD is already overtaking Hyundai globally. In the first quarter of 2026, BYD ranked as the third-largest EV maker in the world excluding China. Hyundai Motor Group followed in fourth place. Industry officials warned that US-reliant Hyundai must brace for a hit to earnings. Global carmakers should diversify sales channels to reduce reliance on the American market as Chinese competition intensifies.