For decades, we have been buying a lot of stuff from Amazon, except cars. You heard it right. Hyundai is going to be the first car to be listed on Amazon (NASDAQ: $AMZN) next year through an agreement with the South Korean maker.
Both of the companies collaborated at the Los Angeles Auto Show on November 16th and announced this news with another plan to implement Amazon’s Alexa Artificial Intelligence speaker in Hyundai cars starting in 2025.
Furthermore, the CEO of Hyundai Motors said in a press release, “Partnering with one of the world’s most customer-centric organizations unlocks incredible opportunities as we continue to expand our portfolio, grow our sales network, transition to electrification and realize the future of smart mobility.”
Hyundai Aims for its First EV Factory in USA
Moreover, the announcement was made as Hyundai Motors is expanding its reach in the U.S. market with the strong sales of its opulence, luxury, and Ionic electric vehicles. These automakers are working to create a new E.V. factory in Georgia, thus aiming to create more cars in the United States. This factory will be completed in 2025 as Hyundai motors mentioned that over 2,000 people are working each week for the rapid production of first Hyundai EV plant in USA.
Amazon CEO Andy Jassy said, “Our broad, strategic partnership should” improve “the ease with which consumers can buy vehicles online.”
The company will be able to sell and list their cars on the Amazon USA website in 2024; then, the customer can buy the car online.
No Home Delivery
The car won’t be delivered to your doorstep; once you have selected and ordered it from the Hyundai dealership, you will have to pick it up.
An industry analyst of Edmunds.com, Jessica Cadwell, said, “It’s not like you’re going to buy it, and then the car will be delivered to your house the next day like you’re a Prime member or something like that.”
She also mentions, “If that is the expectation then that needs to be managed, because I would imagine that would lead to quite a bit of disappointment on the consumer end.”
Amazon spokesman mentioned that Amazon will make it more seamless for the customers, much like “buying a car online”. Moreover, customers on Amazon will be able to check the prices of the vehicles and buy them. They can only order those cars which are in the inventory of the dealership.
Hyundai EVs Makes Entry into Amazon USA
Hyundai company has been selling Ioniq 5 E.V. and Nexo fuel cell cars online since May 2022 in Japan. However, the sales haven’t been great since brands like Honda and Toyota dominate the country. Whereas Tesla is one of the top EV sellers in the USA with over 300,000 unites ahead of Hyundai.
Furthermore, as mentioned above, the drivers driving Hyundai cars in the U.S. will be able to ask Alexa to play music, audiobooks, and podcasts. Additionally, Amazon will be featuring more vehicle brands on their website in the future.
Hyundai cars getting listing on Amazon USA will give it more popularity and increase in sales in the upcoming years. They are already planning to develop their EV factory in the USA and ready to compete with other car brands in the country.
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