In an industry long reliant on fragmented, outdated software systems, Tekion emerges as a bold innovator—streamlining dealer operations, enhancing customer engagement, and injecting AI-driven efficiency into the automotive retail experience. At its core lies the Automotive Retail Cloud (ARC), supported by the Automotive Enterprise Cloud (AEC) and Automotive Partner Cloud (APC)—together forming a seamless, cloud-native ecosystem.
1. ARC: The Unified Cloud Platform Reimagining Dealership Operations
Introduced in early 2020, ARC replaces siloed dealership systems with a comprehensive, modular platform:
Comprehensive DMS covering variable ops, fixed ops, business office, parts, and finance functions, integrated from the outset.
Mobile-first Digital Service Experience, enabling dynamic service workflows through mobile devices—offering photo/video support, approvals, and contactless payments.
Advanced Analytics & NLP, including dashboards and natural language chatbots answering questions like “How many cars did we sell today?”.
Virtual-to-Visit Retail, blending digital negotiation, eSigning, secure document upload, and online payment into a streamlined purchase journey.
Tekion Pay, a PCI-compliant payment system with digital receipts, deferred payment options, credit card surcharges, and streamlined reconciliation.
These features underscore how ARC transforms a dealership’s operations into a unified, cloud-native engine—bridging sales, service, analytics, payments, and more.
2. ARC CRM & AI: Intelligent Engagement Meets Automation
Tekion’s ARC CRM brings AI to the heart of dealer-customer interactions:
AI-powered CRM (2022) delivers a 360° customer view, supporting real-time data flow, duplicate resolution, sentiment scoring, lead flow management, and a mobile app equipped for on-the-go operations.
Tekion AI (2023) adds GPT into the mix—enabling Smart Communication, which summarizes dealer communications and auto-generates personalized messages. Reports show 30–45 minutes saved per agent per day and 41% faster lead response times.
Tekion AI Agents (2025) advance beyond assistance to full workflow automation. The first agent, focused on service operations, handles tasks like identifying repairs, initiating approvals, and coordinating next steps—including real-time customer updates—boosting efficiency and profitability.
Tekion's AI capabilities represent a shift from passive insights to proactive, autonomous action across dealership environments.
3. AEC: Connecting OEM Brands with Retail Execution
Launched in March 2022, the Automotive Enterprise Cloud (AEC) bridges OEM brand websites with dealership systems:
Delivers a unified vehicle configurator, transparent pricing, and real-time inventory syncing.
Supports secure, end-to-end digital purchasing—from personalization and eSign to transaction and delivery scheduling.
Provides in-depth digital analytics, such as funnel tracking, click heatmaps, traffic flows, and team performance metrics.
As GM and other automakers have leveraged AEC for integrated digital retail journeys—especially in EV and used-car segments—AEC is redefining how customers initiate and complete purchases online.
4. Corporate Profile: From Silicon Valley Roots to Global Impact
Founded in 2016 by former Tesla CIO Jay Vijayan, Tekion is headquartered in Pleasanton, CA, with strong operational hubs in Bengaluru and Chennai, and offices across North America and Europe.
Key growth milestones:
Became a unicorn in 2020 after a $150M Series C raise.
Secured $250M in Series D (2021), valuing it at ~$3.5B.
Obtained an additional $200M in growth funding (2024) from Dragoneer, pushing valuation beyond $4B—bringing total funding to ~$640M.
By 2023, Tekion reported revenues of $100M, serving 2,000+ dealerships, 52+ OEM brands, and 250+ tech partners—signaling widespread adoption.
5. Impact Metrics: Efficiency, Savings & Dealer Feedback
According to Tekion’s own data:
Dealers realized up to $31,900 in monthly savings, $4,000 monthly on paper/toner, a 34% increase in Fixed Ops sales, and up to $6,000 monthly savings in damage claims.
Additional reported improvements include up to 23% reduction in time, and a 31% increase in some performance metric—as per dealer partners.
Voices from the dealer community reflect a range of experiences:
Positive feedback:
“Tekion is infinitely better than CDK… you check in vehicles via iPhone or iPad… text guests, build quotes... no more clunky code inputs.”
“Tekion is the only cloud-native DMS… web-based, deep mobile capabilities, all‑in‑one across major modules…”
Constructive criticism:
“It will be a rocky transition… Tekion’s training is horrible… but after a few months you get used to how it works.”
“So we switched 4 months ago... inventory is a complete mess... refund process took three months… lagging repair order entry…”
“Stay away... Tekion is an ALPHA release at best… slow, cumbersome… everything is 2–3 times as many steps.”
These reflect modern innovation’s tradeoffs—immense long-term potential paired with short-term onboarding challenges.
6. The Competitive Landscape: Innovation Under Fire
Tekion’s disruptive momentum has not gone unnoticed. In December 2024, Tekion filed an antitrust lawsuit against legacy DMS titan CDK Global—alleging CDK withheld dealer data to slow transitions, violating antitrust laws.
In turn, in February 2025, CDK counter-sued, accusing Tekion of orchestrating a “sophisticated hacking campaign” to extract confidential dealer data via unauthorized means.
These legal battles underscore the deep industry tension between legacy entrenchment and next-gen disruption.
7. Why Tekion Matters: A Visionary Approach to Automotive Retail
Tekion stands at the intersection of emerging technologies and marketplace needs:
It offers one unified platform that spans ERP, CRM, digital retail, AI automation, and payments—all powered by cloud infrastructure.
It embeds AI from the ground up—starting with smart communication and evolving into autonomous agents that drive end-to-end workflows.
Through AEC, Tekion bridges OEM brand engagement with retail execution, enabling immersive, data-rich customer journeys.
With strong capital backing, global expansion, and measurable dealer ROI, Tekion is positioned not just as a software company, but as a strategic growth partner.
While adoption may require process change and learning, the upside—efficiency, personalization, and real-time intelligence—is industry-defining.
Tekion—Transforming Automotive Retail for the Era Ahead
Tekion is not just redefining dealership software—it’s transforming the entire automotive retail experience. Its cloud-native ARC platform, AI-powered tools, and end-to-end digital ecosystems are enabling dealerships and OEMs to operate smarter, more profitably, and more collaboratively with their customers.
While transitions can challenge traditional workflows, early adopters find the long-term value superior. With its backing, innovation, and product breadth, Tekion is charting a future where automotive retail feels modern, seamless—and customer-first.
