Amazon is making a significant move by announcing that it will start selling new automobiles on its platform in the United States next year. The e-commerce giant made this announcement in collaboration with Hyundai at the Los Angeles Auto Show, with Hyundai being the first brand to be sold on Amazon.
Customers will be able to select their preferred car models and features online and then either collect the car from their local dealership or have it delivered to their home. Financing options will also be available through Amazon. Amazon’s Chief Executive Officer Andy Jassy expressed the company’s excitement about the collaboration with Hyundai and their shared passion for improving customers’ lives.
This move by Amazon signals a shift in the automotive retail industry, as it previously only allowed customers to browse deals on its platform but not make the final purchase. In addition, included in the partnership with Hyundai is the presence of Amazon’s virtual assistant, Alexa, in car models from 2025.
Direct sales to customers have been growing in the U.S., particularly with electric vehicle makers like Tesla cutting out traditional dealership middlemen. Automakers like Ford are also looking to reduce their reliance on dealerships, especially with the commercialization of electric vehicles, which can make vehicles more expensive.
The announcement from Amazon has had an impact on other companies in the automotive industry, with stock prices falling for businesses that sell used cars online. Shares of auto retailers CarMax and Carvana plunged following Amazon’s news. This move by Amazon indicates a shift in the automotive retail landscape and may have implications for the industry as a whole.