Demand for Amazon Alexa in cars is ‘through the roof,’ exec says

SEATTLE — Demand from automakers for Amazon’s voice-enabled technology is “through the roof” heading into 2020, according to Ned Curic, vice president of Alexa Auto.

“Two and a half years ago, we had nothing,” he told CNBC following a tour of Amazon’s headquarters last week in Seattle. “We’re much further than I thought we would be. I’m quite pleased with the speed we were able to build and deploy.”

Amazon wants to capitalize on a growing demand for connectivity in vehicles and create a seamless ecosystem for Alexa on the go and at home. Automakers are looking to improve current in-vehicle voice recognition systems after years of lackluster offerings that have harmed quality and reliability ratings.

Automakers started partnering with Amazon for rudimentary tasks such as starting the vehicle remotely through Alexa in-home devices in 2016. The sides have since expanded those collaborations to embed Alexa into vehicles, allowing Alexa to control some vehicle functions. The tech giant also earlier this year released Echo Auto, an aftermarket in-vehicle device with Alexa.

Amazon has announced partnerships with 10 automakers. Additional tie-ups, expanded relationships and increased functionality with current vehicles are expected next year and beyond.

Arianne Walker, Amazon chief evangelist of Alexa Auto, said the tech giant is “essentially talking” with all major automakers on partnering in some form.

“It’s really more of a matter of getting things lined up for the cars that are going to be released as opposed to any hesitation,” she said.

Amazon also could potentially bring Amazon’s Fire TV streaming service into rear-seat entertainment systems, according to Curic, a former executive with Toyota Motor. The company, he said, is analyzing if it’s something that’s needed given the proliferation of smartphones and tablets.

“There is a lot of demand by automakers for having something like a Fire TV in a rear seat,” he said. “They still think it’s very important. It’s something we’re going to have to figure out. We’re doing lots of data analysis.”

Alexa in-vehicle

General Motors has announced the largest plans to embed Alexa into its vehicles. The automaker in September said the technology will be available on millions of newer Buick, Cadillac, Chevrolet and GMC vehicles with compatible infotainment systems in the first half of next year.

“This brings the best of two fantastic companies,” Santiago Chamorro, GM’s vice president of global connected services, told CNBC when announcing the plans. “We have listened to our customers, and their insights are clear, they want to carry those ecosystems into their vehicles.”