Dive Brief:
- Hyundai will sell its vehicles on Amazon in the U.S. in 2024, the companies announced Thursday.
- Customers will be able to search on Amazon for Hyundai vehicles in their area by model, trim, color or features. Once a customer selects a car, they can check out online with their chosen payment method or select financing options.
- After purchase, customers can pick up their vehicle at a local Hyundai dealer or get it delivered.
Dive Insight:
The launch of online vehicle sales through Amazon builds on the 2018 launch of Hyundai's digital showroom on Amazon, which allows customers to configure a vehicle and calculate the price online before heading to a local Hyundai dealer to complete the sale.
Hyundai also announced it will integrate Amazon’s Alexa digital assistant in its next-generation vehicles in 2025. Drivers will be able to ask Alexa to play music, set reminders, update to-do lists, check calendars or control their smart home from their Hyundai vehicle using Alexa routines.
“Partnering with one of the world’s most customer-centric organizations unlocks incredible opportunities as we continue to expand our portfolio, grow our sales network, transition to electrification and realize the future of smart mobility,” Hyundai Motor Company President and CEO Jaehoon Chang said in a statement.
The business model of Amazon and Hyundai will also not violate any local dealer franchise laws, which prevent manufacturers from selling new vehicles directly to the public in many states. That’s because Amazon will provide an additional online marketing and sales channel for Hyundai dealers, which will get credit for vehicles sold through Amazon.
The online sales partnership comes as car buyers become more frustrated with the traditional vehicle purchase process. According to a 2022 Cox Automotive study, satisfaction with the car buying process declined in 2022 for the second straight year. The study found that car shoppers were frustrated with high prices, limited availability and the time spent buying a vehicle.
“Despite the industry's focus on improving this experience, customers continue to express frustration with the process,” Hyundai Motor Company Global President and COO José Muñoz said during a presentation at the Los Angeles Auto Show on Thursday. “They see how easy it is to buy all the products on Amazon. And they want that convenience when buying a car.”
