AMAZON will sell Hyundai models in the US market from the second half of next year. This is Amazon’s third move into the auto market in the past eight years and with more – possibly Kia and Genesis – to follow.Neil Dowling
Amazon announced at the Los Angeles Auto Show this month that it has a partnership with Hyundai and will start selling vehicles to US customers on its website in the second half of 2024, with other brands joining later.
The partnership between Amazon and Hyundai includes the online sales of vehicles.
Amazon will become Hyundai’s preferred cloud provider to help facilitate the Korean car maker’s digital transformation. Hyundai’s next-gen range will be coming from the factory with Amazon’s Alexa built-in experience.
The deal means that from mid next year, US Hyundai dealerships will be able to sell vehicles in Amazon’s US store, with Hyundai being the first brand available for customers to purchase.
Hyundai Motor Company of Australia told GoAutoNews Premium that the arrangement with Hyundai is only for the US market and that it had no plans for the offer to extend to Australia. There was no word on any other markets being investigated.
Amazon said the digital shopping experience will make it easy for US customers to buy a new Hyundai online, and then pick it up or have it delivered by their local dealership at a time that works best for them.
Customers will be able to search on Amazon for available vehicles in their area based on a range of preferences, including model, trim, colour, and features, choose their preferred car, and then check out online with their chosen payment and financing options—all within the Amazon experience.
For the dealers, this new shopping experience will create another way for them to build awareness of their selection and offer convenience to their customers.
Amazon said that customers would be able to buy a vehicle online and then pick it up or have it delivered by their local dealership.
It said that this still rewards dealerships, unlike the direct sales models that completely sidestep the business model. When vehicles go on sale at Amazon, the local Hyundai dealer will be the seller of record.
It’s not the first time that Amazon has linked to sell vehicles online, but it is the only current arrangement.
Amazon in 2016 trialled online new car sales in Italy with Fiat, offering only three models – the Fiat 500, Panda and 500L. The arrangement ended later that year.
In 2018 Volvo Car UK teamed up with Amazon in a ‘Prime Now test drives’ initiative, which allowed Amazon customers to book a test drive via the super-fast Prime Now UK delivery platform and have a Volvo V40 hatchback delivered to their door by a Volvo product specialist at the time of their choosing. That has also ended.
Amazon CEO Andy Jassy said: “Hyundai is a very innovative company that shares Amazon’s passion for trying to make customers’ lives better and easier every day.
“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.”
Hyundai Motor Company president and CEO Jaehoon (Jay) Chang said: “Partnering with one of the world’s most customer-centric organisations unlocks incredible opportunities as we continue to expand our portfolio, grow our sales network, transition to electrification and realise the future of smart mobility.”
“Amazon is the ideal partner to help realise our vision of progress for humanity, including improving how people and goods move more efficiently and sustainably.
“Hyundai is the first automotive company available for full end-to-end transactions in Amazon’s U.S. store and this is another example of how we continue to push for ways to elevate the customer journey together with our outstanding retail partners.”
By Neil Dowling