Tekion is a trailblazer in automotive retail, presenting a unified, cloud-native software ecosystem for dealerships, OEMs, and consumers. With its flagship Automotive Retail Cloud (ARC) platform, along with complementary Automotive Enterprise Cloud (AEC) and Automotive Partner Cloud (APC) layers, Tekion is reimagining how vehicles are sold, serviced, and serviced in today's digital-first landscape.
1. Unifying Every Dealership Function in the Cloud with ARC
Launched in February 2020, the Automotive Retail Cloud (ARC) serves as a consolidated, cloud-native alternative to fragmented legacy systems. Designed from the ground up, ARC brings together:
DMS core functions spanning variable and fixed operations, business office accounting, parts, service, sales, and F&I—all under one interface.
A mobile-first, Digital Service Experience, enabling seamless customer interactions through tablets or phones—think visual MPVIs, online approvals, and contactless payments.
Advanced Analytics & NLP-powered dashboards, including a natural language query bot that can answer intuitive prompts like “How many cars did we sell today?”
Virtual-to-Visit retail flows, offering enriched digital retail capabilities that let consumers negotiate, e-sign, make payments, and then visit the dealership—providing flexibility and continuity.
Tekion Pay, a secure, PCI-compliant solution offering real-time receipts, digital payment options (including buy-now-pay-later), and streamlined reconciliations.
2. Advanced CRM and AI: Building Intelligent Engagement
In March 2022, Tekion launched ARC CRM, an AI-powered customer relationship management tool embedded within ARC. It delivers:
A unified 360° customer view, consolidating data across all systems and touchpoints.
A drag-and-drop rules engine for lead management, enabling customized, streamlined workflows.
ML-driven insights, such as sentiment analysis, lead prioritization, and intelligent cross-sell prompts.
A powerful mobile super-app—complete with driver’s license scanning, VIN capture, and real-time dashboards.
In September 2023, Tekion introduced the Tekion AI Engine—integrating GPT-powered generative AI alongside machine learning, NLP, and computer vision. Its key feature, Smart Communication, auto-summarizes dealer–customer correspondence and crafts tailored responses. Users have reported saving 30–45 minutes per agent per day and achieving 41% faster lead responses.
Tekion continues to advance its AI vision with Tekion AI Agents, autonomous tools that perform tasks end-to-end on behalf of users. The first example, AI Agent for Service, automates workflows such as part recommendations, approvals, and customer updates—supercharging both efficiency and customer experience.
3. AEC: Bridging OEM Retail Experience to Dealership Execution
Unveiled in March 2022, the Automotive Enterprise Cloud (AEC) platform connects manufacturer brand sites with local dealership systems—promising an immersive, seamless brand-to-store purchasing journey.
AEC features include:
Unified shopping workflows with vehicle configurators tied to dealer inventory.
Real-time e-sign, online transaction processing, and secure checkout.
In-depth digital analytics covering behavior funnels, heatmaps, performance metrics, and team effectiveness.
GM’s initiative to power EV and used-car digital retail tools through Tekion’s AEC is a prime example of this ecosystem in action.
4. Company Overview: Leadership, Expansion, and Growth
Founded in 2016 by Jay Vijayan, former CIO of Tesla, Tekion is headquartered in Pleasanton, California, with a strong presence in Bengaluru, Chennai, and operations across North America, Europe, and India.
Funding milestones reveal its rapid evolution:
2020 Series C: $150M—entered the unicorn status club.
2021 Series D: $250M—valuation rose to ~$3.5B.
2024 Growth Round: $200M from Dragoneer, pushing the valuation beyond $4B and raising total funds to ~$640M.
As of 2023, Tekion achieved ~$100M in annual recurring revenue, and its platform supports over 2,000 dealerships, 250+ technology partners, and more than 52 OEM brands.
5. Dealer Community Insights: Adoption, Praise, and Change Management
Feedback from real-world dealership professionals offers a nuanced view:
What dealers appreciate:
A modern, mobile-focused interface versus antiquated systems.
Frequent updates and responsive enhancements—some reported 24 upgrades in a single month.
A streamlined lead and follow-up process, greatly improving CRM efficiency.
“Tekion is infinitely better than CDK… you check in vehicles via iPhone… build quotes, send inspection videos… no more clunky code inputs.”
“They continue to improve it… that is the best part… I have looked at several options and this is the best.”
Challenges reported:
Transition difficulties—especially in parts workflows, training gaps, and initial slowness.
Feelings of rigidity—users must adapt to the Tekion way, sometimes clashing with legacy expectations.
Early-stage friction—glitches, dashboard lags, and refund inefficiencies.
Tekion’s rapid innovation offers a true shift from traditional, fragmented systems, though it brings a learning curve and the need for intentional change management.
6. Tangible Impact: Efficiency, Savings, and Metrics
Tekion reports striking improvements across dealership operations:
Up to $31,900 in monthly savings after switching from legacy systems.
Up to $4,000 saved monthly on paper and toner.
A 34% increase in Fixed Ops sales, enabled by AI-driven upsell recommendations.
Up to $6,000 monthly savings in lot damage expenses.
Platform engagement data speaks volumes:
$43B+ in transactions processed,
3M+ vehicles sold,
24M+ services completed,
225M+ parts sold, all with 95.6% sales forecast accuracy.
7. A Visionary Leader Driving Disruption
At the helm is Jay Vijayan, whose experience as Tesla’s CIO influenced Tekion’s tech-forward ethos. Now, the company is on track to achieve profitability by 2025, well ahead of any IPO timeline.
His approach—melding cloud, AI, and frictionless design—reflects a bold vision to redefine automotive retail for the digital era.
Tekion—Not Just Software, But Transformation
In under a decade, Tekion has shifted automotive retail forward by:
Replacing siloed, legacy workflows with a fully cloud-native, enterprise-grade platform (ARC).
Embedding AI from response automation to full-service orchestration.
Bridging brand-to-store journeys through seamless OEM integration (AEC).
Delivering measurable ROI through cost savings, productivity lifts, and revenue enhancement.
Leading with bold leadership, backed by strong funding and global expansion.
While early adoption brings challenges, Tekion empowers dealerships to transcend outdated systems and embrace a digital infrastructure built for efficiency, agility, and customer experience.
