Amazon (NASDAQ:AMZN) has unveiled a significant collaboration with Hyundai Motor Company, announced at the 2023 Los Angeles Auto Show, aimed at elevating the customer experience and extending its footprint in the online car sales market.
The key element of this partnership is the planned launch of online vehicle sales in the United States in 2024. Amazon aims to enhance customer convenience and awareness by enabling them to browse available vehicles, select their preferred models, and seamlessly complete the purchase online using their chosen payment and financing options.
Additionally, this collaboration includes the integration of an in-built Alexa experience in Hyundai’s upcoming vehicles, providing an enhanced virtual assistant experience for customers purchasing Hyundai’s next-generation models. This integration will empower Hyundai customers not only to enjoy features like playing music, setting reminders, updating to-do lists, and checking calendars but also to control their smart homes while on the road.
As part of this strategic alliance, Hyundai has chosen Amazon Web Services as its preferred cloud provider.
This move underscores Amazon’s significant foray into the online car store space, reinforcing its presence in the thriving e-commerce sector. According to an imarc report, the global online car buying market is anticipated to reach $563.8 billion by 2028, demonstrating a compound annual growth rate (CAGR) of 11.1% between 2023 and 2028.
In parallel, a Statista report projects the e-commerce market to reach $703 billion by 2028, with a CAGR of 9.9% during the forecast period from 2023 to 2028. The anticipated user penetration in the e-commerce market is set to increase from 43.1% in 2023 to 52.5% by 2028.
These promising prospects within these burgeoning markets are expected to instill confidence and optimism among investors in Amazon’s stock. Notably, AMZN shares have demonstrated strong performance, gaining 72.8% in the year-to-date period, outpacing the industry’s rise of 45.2%.
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