From 2024, shoppers in the US will have the option to purchase a new car online or have it delivered by their local dealership.
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From 2024, shoppers in the US will have the option to purchase a new car online or have it delivered by their local dealership.
Amazon will soon allow automobile manufacturers, starting with the South Korean giant Hyundai, to sell their cars through its US e-commerce portal. Already in the car buying business, Amazon is known for its digital showrooms and offers replacement parts for purchase. However, it is the dealers who list the cars online, not Amazon directly.
From 2024, shoppers in the US will have the option to purchase a new car online or have it delivered by their local dealership. Consumers will also be able to search for available vehicles in their area, and finalize their purchase on the e-commerce portal using their preferred payment method and financing model.
This initiative presents a new way for dealers to increase awareness of their selections and offer convenience to customers.
"Hyundai is a very innovative company that shares Amazon’s passion for trying to make customers’ lives better and easier every day,” said Amazon CEO Andy Jassy.
“Our broad, strategic partnership should do just that, from changing the ease with which customers can buy vehicles online to making it simple to use Alexa in Hyundai vehicles for entertainment, shopping, smart home adjustments, and calendar checks, to enabling Hyundai to transform their customer experiences and business operations by moving to AWS. We look forward to inventing together for many years,” he added.
This strategic partnership also means that Hyundai will utilize AWS cloud computing services and integrate the Alexa digital assistant into its cars starting in 2025. AWS will provide Hyundai with capabilities in compute, storage, database, analytics, and generative AI.
In the US, while companies like Tesla and Rivian maintain direct-to-consumer relationships, traditional car makers like Hyundai navigate complex relationships with dealers, supported by laws in many states that make it difficult or illegal for manufacturers to bypass franchised dealers.
“We’re excited to be working with Hyundai—the third-largest carmaker in the world and a leading innovator in the industry,” said Marty Mallick, Amazon’s Vice President for Worldwide Business and Corporate Development, at the LA Auto Show.
“Together, we will provide customers with more of the buying experiences they want—and support dealers with an efficient and effective selling platform. This is a transformational journey we are on together, and we look forward to a very productive long-term relationship with Amazon,” said José Muñoz, Global Chief Operating Officer for Hyundai and President and CEO of Hyundai and Genesis Motor North America.
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