Amazon, $AMZN, to sell cars online, starting with Hyundai

Amazon, $AMZN, to sell cars online, starting with Hyundai, per TechCrunch.

Amazon is set to expand its presence in the automotive market by allowing auto dealers to sell cars through its platform starting next year. The initiative will kick off with South Korean automaker Hyundai.

While Amazon has previously entered the car-buying sector with digital showrooms for research and comparisons, this move will enable consumers to make direct car purchases on the platform.

Initially launching in 2024, the service will allow customers to buy a new car online and either pick it up or have it delivered by their local dealership. Amazon CEO Andy Jassy stated that the partnership with Hyundai aims to enhance the ease of online vehicle purchases. As part of the collaboration, Hyundai vehicles will feature Amazon's Alexa voice assistant starting in 2025.

This announcement led to a decline in the stock prices of used car dealers such as Carmax and Carvana, as well as major new car dealers like Lithia Motors and AutoNation. Despite Amazon's entry into car sales, the end seller remains the dealership, reflecting the complex relationships and legal restrictions between traditional automakers and dealers.

While companies like Tesla and Rivian have found ways to sell vehicles directly online, the laws governing used vehicle sales are less stringent, making it easier for online platforms like Carvana to sell preowned vehicles directly to consumers.