HYUNDAI AND AMAZON REDEFINE THE SHOPPING EXPERIENCE

By Isabelle Havasy

At the AutoMobility show in Los Angeles, Hyundai and Amazon unveiled a strategic alliance that will radically transform the automotive industry. This partnership goes beyond online sales, with Hyundai designating Amazon Web Services (AWS) as its cloud partner of choice to power its digital transformation. This groundbreaking collaboration aims to optimize production, minimize costs and develop cutting-edge functionality for connected vehicles.

Starting in 2024, Amazon will open the virtual doors of its U.S. store to Hyundai, enabling customers to browse, select and buy their vehicle online. Sales will be made through local dealerships based on availability. Consumers can choose to have their vehicle delivered or pick it up at the dealership.

Hyundai thus becomes the first automaker to use Amazon’s digital sales tool to carry out an end-to-end transaction. However, automotive analysts at J. P. Morgan believe that “[Amazon] intends to act as a third-party lead generator for Hyundai dealers, and will likely not participate financially in the transaction, but rather provide the digital experience and customer purchase flow infrastructure to enable the transaction.”

From 2025, drivers of next-generation Hyundai models will also enjoy the Alexa Built-In experience. Employed to control a number of in-car functions, Alexa will offer traffic and weather information, in addition to operating the navigation system. This feature will also enable users to connect remotely to their smart home.

In the words of Amazon CEO Andy Jassy, “This groundbreaking partnership will change the game by simplifying online vehicle purchasing, integrating Alexa for an unparalleled driving experience, and propelling Hyundai into an era of digital transformation through AWS.”

Hyundai and Amazon will start testing the program with 18 dealers as of January. The automotive industry is closely following the operation of this new model, according to Automotive News.