(Bloomberg) — Amazon.com Inc. Hyundai Motor Company customers will be able to buy Hyundai Motor Company vehicles on the e-commerce giant’s website from next year.
Most read from Bloomberg
Currently buyers can choose a car from multiple automakers but can’t actually buy it on Amazon. They need to connect with the dealer to complete the transaction. Customers will now be able to buy Hyundai vehicles directly from dealers on Amazon, the companies said on Thursday.
The partnership, the first of its kind between Amazon and an automaker, is an incremental step but could inspire other carmakers to follow suit. The pandemic lockdown has accelerated the shift to online vehicle purchasing, and automakers have seized the EV transformation as an opportunity to digitalize auto retail. Nevertheless, strict franchise laws in the US have ensured that dealers remain the middlemen in auto sales transactions.
Buyers will be able to select models from local inventory and choose financing options from Amazon’s site. They can then pick up the car from the dealership or have it delivered to their home.
“This new shopping experience will create another way for dealers to create awareness of their selection and provide convenience to their customers,” the companies said.
Amazon has introduced a variety of features over the past few years aimed at attracting customers when they are thinking about buying and fixing up a vehicle. Its “Your Garage” feature saves the make and model of customers’ cars making it easy to find parts and accessories. Buyers can also purchase tires on Amazon, which will connect them with a local installation service.
A spokeswoman said Hyundai expects Amazon’s platform to help juice sales, but it will continue to pursue the dealership model because they play a key role in vehicle service.
Most Read from Bloomberg Businessweek
©2023 Bloomberg LP