Posts tagged with "Amazon’s Alexa technology to be in cars beginning in 2025"

November 20, 2023

Hyundai customers who want to skip going to a dealership will have a new option next year: shopping on for their new cars on Amazon.com, reports The Wall Street Journal.

The South Korean automaker announced the move on Thursday, November 16, along with Amazon at the Los Angeles Auto Show. Starting in 2024, U.S. auto dealers will be able to sell new vehicles on the tech company’s platform—making Hyundai the first automotive brand to offer such an option for customers.

“Despite the industry’s focus on improving this experience, customers continue to express frustration with the process,” José Muñoz, chief operating officer of Hyundai said at the LA Auto Show. “They see how easy it is to buy all the products on Amazon, and they want that convenience when buying a car.”

The companies said the arrangement will enable customers to purchase a new car on Amazon from a local dealership and then either pick it up or have it delivered.

Prospective buyers will be able to search on Amazon’s website for available vehicles in their area by model, color. and features, and then complete the process using their chosen payment and financing options.

As part of the companies’ partnership, Hyundai will include Amazon’s Alexa technology in the brand’s cars beginning in 2025, the companies said.

The plan underscores how the traditional car-buying experience is continuing to be upended for the automotive industry. During the COVID-19 pandemic, automakers expanded at-home delivery programs, while dealers broadened their websites to help customers tour showrooms virtually.

Hyundai said that, initially, only 15 to 20 dealers will be able to sell their vehicles on Amazon, but that it will expand it to more by the end of next year. “Is this going to help us sell more cars? We believe so,” said Muñoz.

Amazon said it expects to increase car brand offerings on its platform by the end of next year as well.

Consumers in recent years have warmed to the idea of skirting the car dealer—particularly when it comes to newer electric-vehicle models.

Indeed, more EV buyers in 2022 were open to the idea of buying a car fully online compared with gas-powered vehicle buyers, according to a study from Cox Automotive, an industry research firm. Customers who completed more than half of the car-buying steps online were the most satisfied among all buyers in the study, Cox said.

Research contact: @WSJ