Topline
Amazon will allow customers in the U.S. to order Hyundai vehicles online starting next year, according to an announcement Thursday by both companies, as Amazon enters the automotive business by offering a direct-to-consumer option, which is largely unavailable for most traditional automakers.
Key Facts
Amazon customers will be able to purchase a Hyundai vehicle online with the option to pick the vehicle up at a local dealership or have it delivered to their home, according to a joint statement.
Customers will be able to search for available Hyundai vehicles in their area by model, color and features, and then complete the process through Amazon using their chosen payment and financing options, both companies said.
Amazon said the new feature will ācreate another way for dealers to build awareness of their selection and offer convenience to their customers.ā
As part of the partnership, Hyundai vehicles will include Amazonās Alexa technology starting in 2025, according to the announcement, allowing drivers to āask Alexaā for traffic updates or weather reports.
Surprising Fact
An estimated 81% of customers said online retail services improved the process of purchasing a vehicle, according to a study last year from Cox Automotive, an industry research firm. Electric vehicle buyers were also more likely to buy a car fully online compared to gas-powered vehicle buyers, according to the study.
Key Background
Amazon launched Amazon Vehicles in 2016, a ācar research destinationā that allows customers to shop for vehicles, parts and accessories through its website. The company also launched digital showrooms for some automotive brands, allowing customers to research and compare vehicles, though they were unable to purchase them directly through Amazon. Several automotive brands have introduced online retailing options to sell vehicles directly to consumers in recent years, including Tesla and Rivian, an electric vehicle startup backed by Amazon. Other automotive companies are blocked by franchise laws that prohibit automakers from bypassing franchised dealers, according to the Wall Street Journal. Ford chief executive Jim Farley has called for new regulations, suggesting earlier this year that being able to sell vehicles directly to consumers could save the company about $2,000 a vehicle.
Further Reading
Hyundai To Be First Automaker To Sell New Cars On Amazon (Wall Street Journal)
Amazon Will Allow Auto Dealers To Sell Cars On Its Site, Starting with Hyundai (CNBC)