TLDR: Amazon and Hyundai collaborate in potentially transformative online car sales, challenging traditional dealership model amid growing consumer preference for online transactions.
This article is a summary of a You Tube video “Can Amazon And Hyundai Solve Online Car Sales?” by CNBC
Key Takeaways:
- US Auto Dealership Market Size: The auto dealership business in the U.S. is a massive $1.2 trillion industry, indicating its vast scale and economic impact.
- Online Car Shopping Trend: Over 90% of consumers use the internet for car shopping, at least for research purposes, highlighting a significant shift towards online retail in the automotive sector.
- Decline in Dealership Visits: Consumers are visiting fewer dealerships before making a purchase, signaling a change in traditional car buying habits.
- Direct Sales Models: Companies like Tesla and Carvana are pioneering direct-to-customer sales models, bypassing traditional dealerships.
- Amazon and Hyundai Partnership: Amazon, a major e-commerce player, is entering the online car sales space in partnership with Hyundai, indicating a potential industry disruption.
- Consumer Preference for Online Purchases: Global surveys show a growing consumer preference for researching and purchasing cars online, driven by the desire for simplicity and speed.
- Shift Towards Online Transactions: Both legacy and new automakers are moving towards online sales, with plans for fixed pricing and complete online transactions in the near future.
- Amazon’s Pilot Program: Amazon and Hyundai’s pilot program involves a select group of dealers and is initially open only to Amazon employees, testing the feasibility of online car sales.
- Challenges and Regulations: The transition to online car sales faces challenges like consumer preferences for personal connections and regulatory hurdles in different states.
- Uncertain Impact of Amazon’s Entry: While Amazon’s entry into car sales could significantly impact the industry, its long-term influence and success remain uncertain.
