Online retail giant Amazon has announced plans to start selling new cars in the United States next year. The multinational commerce giant will collaborate with Hyundai, the South Korean car manufacturer, which will be the first brand sold on the site.
Customers will be able to select their preferred models and features online, with the option to either pick up the vehicle from a local dealership or have it delivered to their home. Financing options will also be available on Amazon.
“Hyundai is a highly innovative company, sharing the Amazon passion for making customers’ lives better and easier each day,” said Amazon CEO, Andy Jassy, in a statement. Until now, car buyers could browse listings on Amazon but they were unable to complete their final purchase.
Amazon’s virtual assistant Alexa, which will feature in car models from 2025, is included in the partnership with Hyundai. Even though Amazon’s plan involves cooperation from dealerships, direct-to-consumer sales have grown in the US in recent years, driven by electric vehicle manufacturers like Tesla that bypass traditional dealerships.
Just a fraction of car sales are made online, but this is a trend that is growing and the endorsement by Amazon could turbocharge the shift. The company has a history of stepping into new sectors and quickly dominating the market.
Automakers such as Ford are looking to the marketing of electric vehicles to reduce their dependency on dealerships, which ultimately make vehicles more expensive. The announcement saw stock prices of US companies that sell used cars online drop, with automotive retailers CarMax and Carvana seeing a plunge of over 5% in their shares.
