There is a growing sense of alarm among established carmakers as Chinese manufacturers continue their rapid advance into Western markets.

Hyundai CEO José Muñoz has warned that the United States could face its own wave of Chinese vehicle imports, similar to the disruption already being felt across Europe, unless Washington maintains tariffs and other barriers to market access.

The numbers help explain the concern. Muñoz says Chinese cars can be 30% to 40% cheaper than rival vehicles in markets such as France, Italy and Spain. In Britain, where Chinese brands face fewer trade barriers, they accounted for 15% of new-car registrations earlier this year.

For traditional manufacturers, this is becoming increasingly difficult to dismiss as a distant threat. Volkswagen and Hyundai are already operating in an intensely competitive European market, while Chinese manufacturers continue to expand their presence and improve their technology.

And Muñoz is not dismissing that technology. Having previously run Nissan’s Chinese operations, he described the country’s pace of automotive innovation and improvement as “unbelievable.”

The uncomfortable message is clear: the established industry may not simply be facing cheaper competitors. It may be facing competitors advancing faster than expected.

Hyundai is also delaying its own proprietary advanced driver-assistance technology from 2027 to 2029, while turning to Nvidia for interim systems.

For Western automakers, the pressure is no longer theoretical. The Chinese manufacturers are already at the gates—and Europe is providing a warning of what could happen next.