Amazon announces plans to launch vehicle sales in the US next year, partnering with local car dealers to sell directly to customers on its site, starting with Hyundai vehicles.
Amazon and Hyundai Partnership
Amazon will team up with car manufacturer Hyundai to introduce vehicle sales in the US, starting with Hyundai vehicles. The two companies will also collaborate in naming Amazon’s cloud computing unit AWS as Hyundai’s preferred cloud provider and integrating its next-generation vehicles with Amazon’s voice assistant, Alexa.
Sales Model and Program Details
The sales model will allow customers to purchase a new car online and either pick it up or have it delivered from a local dealer. The specific number of participating dealers and the extent of customer access across the US are yet to be disclosed. The program is anticipated to commence with Hyundai franchised dealers and is set to kick off in the later part of next year.
Challenges and Vision
Amazon’s move to expand its scope through dealers in an industry constrained by robust lobbying and state regulations illustrates the company’s ambitious plans. Most states mandate manufacturers to sell their vehicles through dealerships to prevent them from undercutting their network of franchised dealers. Despite this, Amazon aims to streamline the car buying process online, acknowledging that consumers are increasingly inclined to purchase vehicles digitally and emphasizing the provision of transparent solutions to facilitate informed decision-making.