Amazon To Start Selling Vehicles In 2024

Published 8 December 2023

Ground-breaking Move: Amazon Enters Automotive Realm

In a ground-breaking move Amazon recently announced its foray into the world of car sales. The e-commerce giant has partnered with Hyundai, a leading global automobile manufacturer, to make a selection of their vehicles available for purchase on the Amazon platform from 2024. 

Digital Transformation Takes Centre Stage

“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.”

New Digital Shopping Platform Simplifies New Car Purchases

In 2024, Amazon’s U.S. store will enable auto dealers to sell vehicles for the first time, with Hyundai leading as the inaugural brand on offer. This innovative digital shopping platform is set to streamline the process of purchasing a new car online. Customers can easily explore available vehicles in their vicinity on Amazon, considering various preferences such as model, trim, colour, and features. Once the perfect car is selected, customers can seamlessly complete the online checkout process, utilising their preferred payment and financing options—all within the familiar and trusted Amazon environment. This novel shopping experience not only provides convenience but also allows customers to schedule the pickup or delivery of their chosen vehicle through their local dealership at their preferred time. For dealers, this presents an additional avenue to showcase their selection, raise awareness, and enhance the overall convenience for their customers.

Hyundai’s Alexa Integration Elevates Driving Experience

Hyundai’s upcoming generation of vehicles, slated for release in 2025, is set to elevate the driving experience by integrating Alexa Built-in for enhanced responsiveness and interaction. Those opting for Hyundai’s next-generation models will enjoy a seamless transition from their home to their car, accessing a hands-free Alexa experience. Drivers can effortlessly command Alexa to play music, podcasts, or audiobooks, set reminders, update to-do lists, and check calendars while on the go. Beyond entertainment, users can also manage their smart homes remotely, adjusting settings like house temperature and ensuring security by verifying door locks. This integration extends to controlling smart lighting and executing Alexa routines, enabling drivers to multitask efficiently.

Furthermore, drivers can leverage Alexa to stay informed on the road by obtaining real-time traffic updates and weather reports. The in-vehicle media player and navigation system can be effortlessly controlled through voice commands. Notably, certain Alexa features remain accessible even in instances of intermittent or unavailable internet connectivity, ensuring a consistent and reliable user experience. Hyundai’s commitment to integrating cutting-edge technology is poised to redefine the driving experience, seamlessly blending connectivity and convenience for its customers.

Amazon’s Bold Move Reshapes Automotive Retail Landscape

Amazon’s entry into the automotive market is not entirely unprecedented, as the company has already ventured into selling auto parts and accessories. However, the decision to add entire cars to their product line-up represents a bold move that could reshape the landscape of the automobile retail sector.

Partnership Benefits Both Companies

The partnership between Amazon and Hyundai opens up a host of possibilities for both companies. For Amazon, it extends its reach into a lucrative market, providing customers with a seamless and convenient way to browse, select, and purchase a new vehicle from the comfort of their homes. 

On the other hand, Hyundai stands to benefit from Amazon’s vast customer base and established reputation for efficient and reliable online transactions. By tapping into Amazon’s extensive distribution network, Hyundai gains access to a broader audience, potentially attracting customers who might not have considered a Hyundai vehicle through traditional channels.

Beyond Ease of Purchasing: Amazon Promises Hassle-Free Delivery

Beyond the ease of purchasing, the collaboration aims to redefine the post-purchase experience as well. Amazon’s renowned logistics and delivery capabilities come into play, promising timely and hassle-free delivery of the purchased Hyundai vehicles to customers’ doorsteps. This innovative approach could revolutionise the traditional dealership model, where customers typically visit physical showrooms and navigate a complex negotiation process.

Challenges and Sceptics: Embracing the Online Model

However, this move is not without its challenges and sceptics. The automotive industry has long relied on the established dealership model, where customers can physically inspect and test drive vehicles before making a purchase. Some critics argue that buying a car is a substantial investment that requires a hands-on approach, and that the online model may not fully address this need for tangible interaction.

Moreover, concerns about the potential impact on traditional dealerships and their role in the local economy have been raised. Dealerships have historically played a vital role in providing employment and contributing to the community, and the shift towards online sales may disrupt this established system.

Another consideration is the complex nature of car sales, which often involves financing, trade-ins, and negotiations. While Amazon and Hyundai have addressed the issue of scheduling test drives, there are questions about how well the online platform can handle the intricacies of these additional aspects of the car-buying process.

In conclusion, Amazon’s collaboration with Hyundai to sell cars online marks a significant milestone in the evolution of both e-commerce and the automotive industry. The move reflects a strategic alignment of customer-centric values and digital innovation, aiming to simplify and streamline the car-buying experience for consumers. While challenges and scepticism remain, the partnership has the potential to reshape the way we purchase vehicles and may pave the way for similar collaborations between e-commerce giants and automakers in the future. As the automotive industry continues to evolve, the Amazon-Hyundai partnership serves as a testament to the transformative power of digital disruption.