In a recent announcement, Amazon (NASDAQ:AMZN) revealed plans to facilitate car sales in the United States, allowing local car dealers to directly sell vehicles on its platform. The e-commerce giant is set to commence this initiative next year, starting with the introduction of Hyundai vehicles. The joint announcement, made alongside car manufacturer Hyundai, outlined a collaboration that extends to Amazon Web Services (AWS) becoming Hyundai’s preferred cloud provider. Additionally, Hyundai’s next-generation vehicles will integrate with Amazon’s popular voice assistant, Alexa.
The envisioned process involves customers purchasing a new car online through Amazon and subsequently picking it up or having it delivered from their local dealership. While the company did not specify the number of participating dealers or the nationwide availability of the service, an Amazon spokesperson stated that more details would be released as the program develops. The initiative is expected to kick off with Hyundai franchised dealers, with the launch slated for the latter part of the coming year.
Although Amazon currently sells vehicle equipment and provides an online showroom for car research, direct vehicle purchases on its platform are not available. The latest announcement underscores Amazon’s expansion ambitions within the automotive industry, navigating an environment marked by robust lobbying forces and stringent state regulations. Many states mandate vehicle manufacturers to sell through dealerships to safeguard the interests of their franchised dealers.
While Amazon aims to simplify the car buying process, potential challenges may arise as consumers accustomed to traditional dealerships may find it unfamiliar to make significant purchases directly on the platform. In response, an Amazon spokesperson emphasized the increasing trend of online vehicle purchases, assuring that the company would offer a “range of solutions” to enhance transparency in the car-buying process, facilitating informed decisions for customers.
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Author Stephanie Bédard-Châteauneuf 
