Key points
- Amazon Autos has expanded its vehicle lineup to include Kia, Mazda, Subaru, Chevrolet and Jeep, a major expansion since Hyundai’s exclusive initial launch in late 2024.
- The service has reached more than 130 metro areas nationwide, extending to major hubs such as Los Angeles, Dallas and New York.
- Instead of bypassing traditional dealers, Amazon partners with local franchises — where agents load inventory, set transparent pricing, and manage final transactions.
- The new car market in the United States represents $1.3 trillion in annual sales, while auto manufacturers are expected to devote more than $30 billion to advertising in 2025.
- Analysts maintain a Strong Buy rating on AMZN stock, with the consensus price target reaching $284.20 per share, indicating a potential upside of approximately 19.5%.
When Amazon launched its auto sales platform in late 2024, it featured just one automaker. Today, the initiative has developed into a comprehensive automotive market.
Over the past 18 months, Amazon Autos has welcomed Kia, Mazda, Subaru, Chevrolet and Jeep to its digital showroom. This represents significant growth beyond just Hyundai’s platform debut. The program now operates in more than 130 American cities.
The purchasing process follows a simplified model. Shoppers discover new vehicles through Amazon’s interface, arrange financing digitally, and complete most documentation remotely. Final assembly of the vehicle takes place at participating dealers. Merchants cover listing costs while clients face no additional fees on the platform.
According to Amazon, hundreds of agents have joined the program so far. “Although we are still in the early days, we are seeing a strong response from customers and merchants,” said Van Gehen, director of Amazon Automotive.
Targeting a $1.3 trillion industry
New American car sales totaled about $1.3 trillion last year, according to data from the National Automobile Dealers Association. This sector remains among the last large retail sectors that have not yet moved meaningfully to digital commerce.
Amazon It aims to serve as a digital connector. The market uses transparent, fixed-price models – a sharp contrast to traditional dealer bargains that research shows most consumers strongly dislike. Industry surveys have revealed that buyers prefer dental procedures to traditional car price negotiations.
However, preliminary performance measures show variability. South Bay Hyundai in California, an early adopter, transports approximately 10 vehicles a month through Amazon. This number has since dropped to approximately five per month. The dealership’s general sales manager cited challenges including paperwork errors and inventory management conflicts with in-person clients.
Meanwhile, a Kia franchise in Glendale, California, recorded one sale — a $55,000 Kia Carnival — during its first six weeks. The agent expects improvement but recognizes the nascent stage of the platform.
Unlock advertising revenue
Beyond direct vehicle transactions, car sales can open up much greater revenue opportunities for Amazon through advertising channels.
Automakers are expected to invest more than $30 billion in advertising throughout 2025. Amazon’s advertising division already ranks among its fastest-expanding business units. By attracting automotive brands into its ecosystem, Amazon It positions itself to capture significant portions of those marketing expenses.
“Amazon is making a big push for advertisers who don’t typically advertise on Amazon,” noted Sky Canaves, retail analyst at Emarketer.
The expansion into manufacturers including Chevrolet (General Motors) and Jeep (Stellantis) puts Amazon in direct competition with established car listing platforms. The move also targets Prime subscribers who are already accustomed to the Amazon purchasing experience.
AMZN’s stock price rose just 0.05% after the expansion announcement. Wall Street maintains a Strong Buy consensus rating based on 43 Buy recommendations and three Hold ratings issued over the last three-month period. The average analyst price target is $284.20 per share.
