Tekion: Reimagining Automotive Retail with Cloud‑First Innovation

Founded in 2016 by ex‑Tesla CIO Jay Vijayan, Tekion has rapidly emerged as a pioneer in automotive retail technology. Operating from Pleasanton, California, with regional offices in Bengaluru and Chennai, Tekion seeks to dismantle outdated dealership silos by connecting OEMs, retailers, and consumers through a modern, cloud-native platform.

A Unified Platform: Automotive Retail Cloud (ARC)

At the core of Tekion's innovation is the Automotive Retail Cloud (ARC) a cloud-native Dealer Management System (DMS) that integrates operations across sales, service, parts, accounting, CRM, and payments.

• Sales & Finance (F&I): Real-time deal structuring, AI-generated finance menus, digital signing, and remote negotiations all within a single, seamless interface accessible via desktop, tablet, or phone.

• Service & Parts Operations: AI-powered appointment scheduling, mobile inspections, intelligent upsell prompts, and real-time inventory updates synced across OEMs and departments.

• Accounting & Payments: Automated AR tracking, chargeback policy controls, expense visibility, and integrated payment processing via Tekion Pay, which supports BNPL, surcharging, and contactless workflows—all while maintaining PCI‑compliance.

This all-in-one design eliminates the need for multiple siloed systems and enables modern dealerships to operate with greater agility, efficiency, and transparency.

Advanced Analytics: Instant Insights, Real-Time Decisions

Tekion’s Advanced Analytics suite offers built-in dashboards for all dealership functions sales, operations, inventory, finance, and service. Highlights include:

• One-click access to root cause analysis for anomalies in KPIs

• Predictive forecasting aligned with historical data and business goals

• A natural language query assistant (NLP bot) for queries like “How many vehicles sold today?” on mobile

• Enterprise-level visibility across departments or multi-site dealer groups, without needing custom reports

Tekion AI & Smart Communication: The GPT-Powered Connection

September 2023 saw Tekion introduce its enhanced AI Engine combining machine learning, NLP, computer vision, and Generative AI (GPT) into one intelligent system.

Smart Communication, the first GPT capability, analyzes dialogue between dealership agents and prospects to generate insights, next-step prompts, and even automated emails. According to beta users, it was used in 75% of sales messages, delivering 30–45 minutes of agent time savings per day and improving response rates by up to 41%.

By November 2023, the feature became generally available, and Tekion has promised further GPT‑powered enhancements in service, accounting, and CRM.

AI Agents: Automating Core Service Workflows

In May 2025, Tekion unveiled AI Agents, starting with the Service Agent a vertical AI solution designed to autonomously manage end‑to‑end service workflows.

The Service Agent handles tasks such as identifying required repairs, scheduling work, prompting approvals, and providing real-time customer updates—minimizing administrative intervention while improving operational throughput and service revenue.

According to Finley Ewing IV, CEO of a major dealer group, the automation allows advisors to focus on customer engagement rather than paperwork, enhancing upselling and improving vehicle safety outcomes.

Digital Retail & Automotive Enterprise Cloud (AEC)

Digital Retail Experience (ARC Extension)

Tekion’s Digital Retail module offers integrated e-commerce directly tied into ARC. It includes live vehicle configurators, online negotiations, transparent calculators, document signing, and checkout concierge functions. Customers can start their journey online and seamlessly finish in-store, or vice versa.

Automotive Enterprise Cloud (AEC)

AEC orchestrates alignment across OEMs and dealer networks. It enables branded vehicle configurators, real-time inventory visibility, pricing consistency, add-on selections, e-signatures, payment, and delivery scheduling—from a single interface.

This delivers OEM-level control and cohesive brand-to-store consumer experiences, driving efficiency, transparency, and engagement.

Market Validation & Scale

• Founded in 2016, Tekion achieved unicorn status in 2020 after raising $150M in Series C; followed by $250M in Series D in 2021, led by Alkeon and Hyundai, valuing the company at around $3.5B. A $200M round in July 2024 lifted the valuation beyond $4B—total funding exceeding $640M.

• As of 2023, revenue surpassed $100M, supported by over 2,500 employees worldwide.

• Tekion services include top OEMs and dealer groups such as Hyundai, Acura, Porsche, and GM through pilots and full-scale deployments.

What Makes Tekion Different

1. Fully Cloud-Native, Mobile-First Design
   No local servers—users access ARC from any device, improving collaboration and agility compared to legacy DMS systems.

2. Unified Platform Architecture
   Combining DMS, CRM, Analytics, AI, Digital Retail, and payments into one stack eliminates data silos and streamlines workflows.

3. AI Built into Core Workflows
   GPT-powered Smart Communication and AI Agents automate sales follow-up and service tasks—rather than serving as add-on features.

4. OEM-Centric Ecosystem via AEC
   AEC empowers brands to integrate their websites and tools directly into retail systems at local dealerships, offering a cohesive brand-to-door experience.

5. Enterprise-Grade Analytics
   High-level dashboards provide real-time, actionable insights with built-in forecasting and root-cause tools without requiring IT intervention.

User Feedback: Enthusiasm & Frustration

Positive Experiences

Service advisors and sales users often report:

“Tekion is infinitely better than CDK. It’s app-based… incredibly easy to use”
“Once your workflows are dialed in, the CRM processes simplify dramatically—even closing more leads”

The platform is celebrated for its ease-of-update and cloud-driven innovation pace:

“In one month they released 24 updates… you can adopt or skip them at will”

Critiques & Operational Hurdles

However, parts departments, data-heavy accounting teams, and users migrating from legacy systems occasionally raise issues:

• Inventory and parts management workflow hiccups, including short‑sale handling and delayed refunds

• Performance lags and system downtime with some reporting slow page loads, logout issues, and slow repair order creation, especially early on

• Training and support gaps, particularly during go‑live transitions, leading to frustration among staff less familiar with new systems

Many reports also note that first adopters did not always receive the latest feature updates, creating intra-group inconsistency.

Looking Forward: What’s Next for Tekion

Tekion is focused on expanding its footprint and technology capabilities:

• Ongoing rollout of AI Agents across functions like accounting, CRM, parts, and service to further streamline operations.

• Increasing adoption of AEC by OEMs, especially in the EV segment and digital-first retail strategies.

• Global geographic expansion—strengthening presence in Europe, India, and broader Asia-Pacific markets.

• Continued emphasis on automation, efficiency, and path to profitability, with CEO Jay Vijayan targeting sustainable growth over an IPO timeline.

Tekion is transforming the automotive retail ecosystem, delivering a platform that spans cloud-native infrastructure, AI-first workflows, digital retail, and enterprise analytics all interconnected. While operational challenges persist especially during early implementations or in parts-heavy workflows the advantages of speed, integration, and modern design are redefining what a dealership system can be.

For dealerships and OEMs pursuing digital maturity, Tekion offers a forward-thinking, scalable platform that positions them firmly in the future of automotive retail.