Last year, Amazon and Hyundai unveiled a revolutionary partnership that would allow the automaker to sell its vehicles on the massive e-commerce platform.
Despite the substantial delays caused by June’s CDK cyber attack, which impacted more than half of Hyundai’s U.S. dealership network, the Hyundai-Amazon platform continues to progress steadily. The attack, while significant, has not deterred the team’s commitment to the platform’s development. Hyundai’s COO, Jose Muñoz, remains optimistic, anticipating the innovative e-commerce platform could be ready as early as January 2025.
Hyundai and Amazon first introduced their concept at the 2022 Los Angeles Auto Show, showcasing the automaker’s dedication to digital innovation. In 2023, they launched a pilot program with 18 dealers and Amazon employees who collected data and addressed the complexities of the process. This initiative aims to ensure a seamless and innovative platform for consumers.
Dealers initially were skeptical of the Hyundai-Amazon platform, with many concerned that what appeared to be a direct-to-consumer model would exclude them. However, the National Automobile Dealers Association (NADA) ensured that the agreement between Hyundai and Amazon adhered to franchise laws.
The Hyundai-Amazon platform aims to enhance dealer capabilities, provide consumers with a streamlined digital experience and convenience, and strengthen Hyundai’s market presence.
The Hyundai-Amazon platform is not a direct-to-consumer model. It is a conduit for sales, allowing dealerships to expand their reach and provide a more convenient experience for consumers. The platform facilitates the sales process, but the actual sales remain between the customers and dealerships, preserving the dealer-customer relationship.
Approximately 80% of Hyundai’s 841 dealers network have expressed interest in the platform after seeing its benefits and how it can enhance their businesses. The platform offers a unique opportunity to expand their reach and provide a more convenient experience for consumers, a potential game-changer in the industry.
Despite consumers’ growing interest in completing their purchases online, the dealer-customer relationship remains at the heart of the process. Many consumers still prefer the personal touch of a physical dealership when finalizing the delivery, underscoring the enduring value of this connection.
