Amazon to sell cars next year in the US
LOS ANGELES: E-commerce giant Amazon said Thursday it would start selling new automobiles on its platform in the United States next year.
Amazon made the announcement at the Los Angeles Auto Show in conjunction with Hyundai, the South Korean auto giant that will be the first brand sold on the site.
BRANCHING OUT Amazon Vice President of Worldwide Corporate Business Development Marty Mallick, Hyundai Motor America CEO Randy Parker and Hyundai President and Global COO Jose Munoz attend the Hyundai press conference on Thursday, Nov. 16, 2023, in Los Angeles, California. Amazon announced on Thursday they will be selling new cars on its platform next year in the United States. AFP PHOTO
The company said customers will be able to choose models and their favorite features online. They can then pick up the car at their local dealership or have it delivered to their home.
Financing options will also be available on Amazon.
“Hyundai is a very innovative company that shares Amazon’s passion for trying to make customers’ lives better and easier every day,” said Amazon Chief Executive Andy Jassy in a statement.
Until now, car buyers could browse offerings on Amazon, but could not make their final purchase on the site.
The partnership with Hyundai will also see Amazon’s Alexa smart speaker featured in models starting in 2025.
Even though Amazon’s plan includes the cooperation of dealers, direct-to-customer sales have expanded in recent years, led by Tesla and other electric vehicle (EV) companies that do away with the traditional dealership middleman.
Carmakers like Ford are trying to use the release of EVs to loosen their dependence on dealerships that end up making a vehicle more expensive.
US companies that sell used cars online saw their share price plummet on Amazon’s news.
Shares of auto retailers CarMax and Carvana dove more than 5 percent.
