Amazon To Start Selling Cars Online In 2024
You may soon be able to ask Alexa to buy you a Hyundai.
Amazon (NASDAQ: AMZN) is set to enter the US vehicle sales market in 2024, allowing local car dealers to directly sell vehicles through its platform. The announcement, made jointly with South Korean car manufacturer Hyundai (KRX: 005380) at the 2023 LA Auto Show on Thursday, revealed that Amazon’s entry into the automotive sector will first feature Hyundai vehicles.
“Customers will be able to search on Amazon for available vehicles in their area based on a range of preferences, including model, trim, color, and features; choose their preferred car; and then check out online with their chosen payment and financing options—all within the Amazon experience they already know and trust,” Amazon wrote in a statement.
The move allows Amazon to expand into the auto sales industry without sidestepping dealerships amid heavy state regulations. The new service, instead of pushing for a direct sales model, still supports and rewards dealerships. This means that when a customer buys a car on Amazon, they will still be buying from a local Hyundai dealer.
This shopping experience, Amazon says, “will create another way for dealers to build awareness of their selection and offer convenience to their customers.”
Amazon has yet to share information on the availability of the service and the number of participating dealerships — a spokesperson said that more details will be released as the program develops. It is expected to begin rolling out in the US by the latter half of 2024.
The new offering is part of a multi-year, broad strategic partnership the two companies announced on Thursday. Hyundai will also designate Amazon Web Services (AWS), the cloud computing unit of Amazon, as its preferred cloud provider, and integrate Alexa, Amazon’s widely used voice assistant, in its upcoming models.
Information for this story was found via Amazon, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
