Amazon to Start Selling Cars Online, Starting With Hyundai

Amazon may soon change how consumers buy vehicles online through its newformed partnership with Hyundai

Beginning in 2024, Amazon will enable auto dealers to sell their vehicles on its online shopping platform. Amazon will start the deal with Hyundai products, eventually increasing its footprint in the automobile business with the move. While the firm previously provided digital showrooms for study and comparison, this advancement allows clients to purchase new automobiles online and have them delivered or picked up at local dealerships. Hyundai’s agreement with Amazon will also incorporate Amazon’s Alexa speech assistant into their automobiles by 2025 to improve the purchasing experience.

To bring the partnership into practice, Amazon will launch a service that will allow people to buy vehicles straight from Amazon. Meanwhile, the dealerships will remain the end sellers of these vehicles. Customers may select automobiles in their region, pay using preferred payment options, and choose delivery or pickup from their local dealership.

In addition, Hyundai’s agreement with Amazon will see Alexa embedded into its vehicles, improving connectivity and user experience. The move has instantly put Amazon as a strong contender in the e-commerce space for vehicles.

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The automotive market is complicated by state restrictions that favour franchised dealers, preventing automakers from selling directly to customers. Tesla has gotten around this by either beginning sales in complying jurisdictions or legally fighting restrictive regulations. However, used vehicle sales are subject to fewer rules, allowing internet companies such as Carvana to sell used vehicles directly.

Amazon’s deliberate entry into auto sales is a significant shift in the e-commerce giant’s usual retail model. Amazon’s relationship with Hyundai, as well as the introduction of direct automobile sales on their platform, reflects the company’s desire to expand its presence in the automotive sector. Its effect on the stock prices of established market participants such as CarMax and Carvana demonstrates the disruption produced by this transition. It might just be the one big move to bring in the new era of vehicle sales through online portals.