On 16th November 2023, Hyundai Motor Company announced a strategic partnership with Amazon. The collaboration was announced at the 2023 Los Angeles Auto Show, stating their initiative to redefine the automotive retail landscape.
As a part of this alliance, Amazon will sell Hyundai vehicles online in the United States by 2024, allowing Hyundai to tap into Amazon's massive customer base. Hyundai also designated Amazon Web Services (AWS) as its preferred cloud provider to steer the digital transformation of the automaker's operations, production processes, and customer service.
The deal signifies increasing adoption of on-demand mobility services, and the growing trend of smart mobility with better in-vehicle facilities. This new e-commerce initiative is leading to growth in mobility as a service. According to BIS Research, the global mobility as a service market was estimated to be at $39.23 billion in 2021, which is expected to grow with a CAGR of 25.7% and reach $379.66 billion by 2031.
Hyundai USA is set to pioneer a groundbreaking approach to car sales by offering its vehicles on Amazon, marking the first instance of a carmaker globally selling its cars directly on the e-commerce giant. Beginning in 2024, Hyundai will leverage a dedicated online platform on Amazon, allowing customers to purchase any Hyundai car and variant with the same ease as buying any other product on the platform. Notably, the vehicles will be dispatched from the dealer's stockyard, mirroring the car buying process directly from the carmaker's website, providing customers with a seamless and innovative online car purchasing experience.
This initiative is poised to redefine traditional vehicle purchasing, allowing customers to explore and acquire their preferred Hyundai models directly on Amazon.com. Integrating Amazon's extensive e-commerce platform into the automotive retail sector aligns with the company's commitment to enhancing customer accessibility and streamlining the purchasing experience.
In their official press release, President and CEO of Hyundai Motor Company, Jaehoon (Jay) Chang, underscored the strategic significance of partnering with one of the world's most customer-centric organizations. The collaboration presents unprecedented opportunities as Hyundai charts its course to expand its product portfolio, enhance its sales network, transition towards electrification, and navigate the evolving landscape of smart mobility. Chang articulated Hyundai's vision of progress for humanity, emphasizing a commitment to improving the efficiency and sustainability of how people and goods move.
In a parallel development, Hyundai has selected Amazon Web Services (AWS) as its preferred cloud provider. This strategic decision is geared towards facilitating the digital transformation of Hyundai's core operations, production workflows, and customer service infrastructure. By leveraging AWS's advanced cloud computing capabilities, Hyundai aims to enhance operational efficiency, innovate in manufacturing processes, and deliver superior customer experiences. This move underscores the collaborative effort to propel Hyundai into a digitally advanced era, ensuring agility and resilience in a rapidly evolving automotive landscape.
Another pivotal aspect of this collaboration involves integrating the Alexa Built-in experience into Hyundai's next-generation vehicles. This integration aims to elevate the in-car experience for Hyundai customers, offering seamless access to Alexa's voice-enabled capabilities. Drivers and passengers can enjoy entertainment options, conduct shopping activities, control smart home devices, and manage their calendars—all through the intuitive voice interface of Alexa. This strategic integration positions Hyundai at the forefront of automotive technology, aligning with the evolving preferences of modern consumers for connected and smart vehicles.
The convergence of e-commerce and smart mobility in the Amazon-Hyundai partnership holds implications for the broader automotive landscape. The traditional boundaries between online retail and conventional dealership models are blurring, presenting a model that prioritizes adaptability and responsiveness to changing consumer preferences. The future of smart mobility is characterized by an interconnected ecosystem where digital platforms seamlessly integrate with the automotive industry, shaping a landscape that is more dynamic, responsive, and attuned to the evolving needs of consumers.
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