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17 November 2023, 06:17

Hyundai becomes first ever car brand to sell vehicles on Amazon - news of a strategic partnership

Hyundai is set to make automotive history by becoming the pioneer car brand to offer new vehicles for sale on Amazon, signaling a strategic move to merge its traditional dealer network with a cutting-edge direct-to-customer approach. The South Korean automaker officially revealed this groundbreaking partnership with Amazon on November 16th, unveiling the collaboration during the LA Auto Show.

Scheduled to kick off in the second half of the upcoming year, Hyundai's foray into selling cars via Amazon's US website is expected to pave the way for other brands to follow suit. While the extension of this option to regions beyond the United States remains uncertain, Hyundai is forging a blended approach, harmonizing its existing dealer network with innovative direct-to-customer alternatives.

Amazon executives emphasize that this partnership aims to revolutionize the online vehicle purchasing experience, simplifying the process for customers. As part of this deal, Hyundai plans to integrate Amazon's Alexa into its new cars starting in 2025.

According to an Amazon spokesperson, customers will soon have the ability to search for available vehicles in their vicinity on Amazon, utilizing a variety of preferences such as model, trim, color, and features. After selecting their preferred vehicle, customers can seamlessly complete the transaction online, choosing their payment and financing options.

Amazon CEO Andy Jassy expressed enthusiasm about the strategic collaboration, highlighting Hyundai's innovation and the shared commitment to enhancing customer lives. The partnership is anticipated to bring about transformative changes, from streamlining the vehicle purchasing process online to integrating Alexa into Hyundai vehicles for diverse functionalities like entertainment, shopping, smart home adjustments, and calendar checks.

In response to this groundbreaking announcement, the stock market witnessed a significant impact on some of America's major car dealers, with shares in Carvana, Carmax, and Autonation experiencing a notable decline of up to eight percent.

José Muñoz, global chief operating officer, president, and CEO of Hyundai, expressed anticipation for the transformational journey ahead, emphasizing the prospects of a highly productive and enduring relationship with Amazon. This strategic alliance aims to redefine the automotive retail landscape, blending traditional and digital channels for the benefit of both dealers and customers alike.

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