Hyundai is to become the first car brand to sell new vehicles on Amazon as the firm looks to blend its traditional dealer network with a new direct-to-customer approach.
The South Korean outfit announced its new partnership with Amazon yesterday (Nov 16) during an appearance at the LA Auto Show.
The carmaker will begin selling cars via Amazon’s US website in the second half of next year, with other brands set to follow suit after that.
It is currently unclear whether the option will be rolled out on this side of the Atlantic further down the line.
Hyundai was one of 15 brands which failed to respond to our survey on agency sales earlier this year.
However, the outfit is now pursuing a blended approach which mixes its existing dealer network with new direct-to-customer options.
Bosses at Amazon say the new partnership is aimed at ‘changing the ease with which customers can buy vehicles online’.
As part of the deal, Hyundai will integrate Amazon’s Alexa into its new cars from 2025.
A spokesman for Amazon said: ‘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,” it said in its announcement.
‘This new shopping experience will create another way for dealers to build awareness of their selection and offer convenience to their customers.’
Amazon CEO Andy Jassy added: ‘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.’
In response to the latest announcement, several of America’s biggest car dealers saw their value on the stock market plummet dramatically.
Markets Insider reports that shares in Carvana, Carmax, and Autonation all fell by up to eight per cent in the aftermath of Amazon’s news.
José Muñoz, global chief operating officer, president and CEO of Hyundai, said: ‘This is a transformational journey we are on together, and we look forward to a very productive long-term relationship with Amazon.’