Amazon and Hyundai Partner to Market Cars on E-Commerce Platform
In a major development that is poised to shake up the automotive industry, Amazon has partnered with Hyundai to market the Korean manufacturer’s cars on its electronic portal. This move has rattled large American dealerships and is set to be closely monitored by other industry players.
The contracting ties between the telecommunications, e-commerce, and automotive industries are increasingly evident, leading to a shift in the traditional business model for car sales. Many manufacturers have begun to explore new avenues for marketing their products, with a focus on leveraging online platforms. This shift has been accelerated by the COVID-19 pandemic, which highlighted alternative and effective methods for selling products.
Hyundai’s agreement with Amazon marks a significant departure from the traditional dealership model. The Korean brand’s range of cars is now available on Amazon’s platform, signaling a strategic move to adapt to changing consumer preferences and the growing integration of cars with electronic devices.
While this partnership is currently a pilot project in the United States, Hyundai and Amazon are closely watching the market’s response to this new approach to car sales. The announcement has raised concerns among Hyundai’s main dealerships in the United States, leading to a drop in their stock market shares.
The move has also sparked speculation about the impact on the traditional dealership network, with many interpreting it as a punishment for markups and high prices charged by dealers. This development is being closely monitored by other manufacturers, as it represents a potential shift in consumer behavior and sales strategies within the automotive industry.
As a pilot test, the partnership between Amazon and Hyundai will begin in the United States, but there is speculation that it may expand to Europe if successful. With this move, Amazon and Hyundai are paving the way for a new era of car sales, one that significantly challenges the traditional dealership model.