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Hyundai-Amazon Partnership: New Era in Auto Tech

Source: Amazon

Seoul, South Korea / Seattle, WA, USA - Hyundai Motor Company (KRX: 005380) and Amazon (NASDAQ: AMZN) announced a strategic partnership at the 2023 Los Angeles Auto Show, signaling a remarkable shift in automotive retail and technology methods.

Why it matters: 

This collaboration between a major automaker and a leading technology company reflects an evolving landscape in the automotive industry, where digital integration and online retailing are becoming increasingly important.

The Key Points

  • Online vehicle sales: Amazon plans to launch online sales of Hyundai vehicles in the U.S. by 2024, allowing customers to purchase cars through Amazon's website. This process will enable selection based on various specifications and options for vehicle delivery.
  • Hyundai's adoption of AWS: Hyundai has selected Amazon Web Services (AWS) as its primary cloud provider to facilitate its digital transformation in manufacturing and customer service areas.
  • Alexa integration in Hyundai vehicles: Starting in 2025, Hyundai plans to integrate Amazon's Alexa into its vehicles, enabling voice-activated controls and connectivity similar to Alexa devices in the home.

What they're saying:

 "Hyundai is a highly innovative company that shares Amazon's passion for improving customers' lives," said Amazon CEO Andy Jassy.  

Jaehoon Chang, president of Hyundai, called Amazon an "ideal partner" for mobility innovation.

What Comes Next:

The partnership is expected to have a significant impact on the automotive industry. 

It represents a marriage of automotive manufacturing expertise with cutting-edge digital and cloud-based technologies.

As these developments unfold, the industry is expected to witness a significant transformation in how vehicles are sold, serviced, and interacted with.