Amazon And Hyundai Enter Partnership, Enabling US Consumers To Buy Cars Online

Starting next year, U.S. consumers can purchase Hyundai cars online via Amazon.

What Happened: Online shopping giant Amazon.com Inc AMZN on Thursday announced a new partnership with Hyundai Motor Co HYMTF as part of which auto dealers will be able to sell vehicles in Amazon’s U.S. store starting with vehicles by the South Korean automaker.

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, Amazon said. They can then pick it up or have it delivered from their local dealership at a time of their preference.

As part of the new partnership, next-generation Hyundai vehicles will also have Alexa built-in starting in 2025. Drivers can ask Alexa to play music, podcasts, or audiobooks, set reminders, update to-do lists and check calendars. They can also control their smart home while on the road.

"We're excited to be working with Hyundai—the third-largest carmaker in the world and a leading innovator in the industry," Amazon's vice president for Worldwide Business and Corporate Development Marty Mallick said.

Why It Matters: Hyundai and Amazon are not new partners. In 2016, Hyundai let users set up test-drive appointments through Amazon. Later, in 2018, it announced a ‘digital showroom’ within Amazon Vehicles to educate customers about its vehicles, models and benefits.

The new partnership is the first of its kind between Amazon and an automaker.

While EV giant Tesla Inc TSLA also sells its vehicles online, it is from the company’s website and involves no dealers. The new Hyundai-Amazon partnership, however, retains dealers and enables dealers to build awareness of their selection while also offering convenience to their customers.  

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