Tekion: Revolutionizing Automotive Retail Through AI and Cloud Technology

In an industry historically slow to innovate, Tekion is breaking barriers. Founded in 2016 by former Tesla CIO Jay Vijayan, Tekion has rapidly positioned itself as a leading force in transforming the automotive retail landscape. With its modern, AI-native cloud platform, Tekion connects dealers, OEMs (Original Equipment Manufacturers), and customers in a seamless digital ecosystem designed for the next era of mobility.

Unlike legacy Dealer Management Systems (DMS), Tekion offers a fully integrated, end-to-end retail experience powered by automation, real-time data, and a user-centric approach.

What Is Tekion?

Tekion is a next-generation platform for automotive retail that brings together all major dealership functions—from inventory management and customer engagement to service and finance—on a single, cloud-native system. With built-in artificial intelligence, open APIs, and deep analytics, the platform delivers real-time insights, automation, and smarter workflows for all stakeholders in the automotive value chain.

At its heart, Tekion is about three key pillars:

1. Personalization – Offering AI-driven interactions for better customer engagement.

2. Productivity – Automating routine tasks to reduce manual errors and boost efficiency.

3. Profitability – Driving more revenue through smarter upsells, better analytics, and improved customer retention.

AI at the Core: Tekion’s Competitive Edge

Tekion’s real game-changer is its artificial intelligence engine, which powers much of its operational value.

🔹 Autonomous AI Agents

Tekion offers autonomous agents that execute tasks automatically. For example, in fixed operations (like servicing), the AI agent can analyze diagnostic data, trigger repair workflows, communicate with customers, and even dispatch technicians—without human intervention.

🔹 Smarter Customer Interactions

From lead management to post-sale service, AI enhances customer communication by automating email follow-ups, summarizing interactions, and recommending next-best actions—all personalized for the individual buyer.

🔹 Data Deduplication and Cleansing

AI keeps customer databases clean by identifying and merging duplicate entries, resulting in more accurate CRM and better marketing performance.

A Truly Modern DMS (Dealer Management System)

The core of Tekion’s offering is its Automotive Retail Cloud (ARC)—a modern, modular, and extensible DMS that replaces outdated legacy systems. Unlike traditional systems that are often fragmented, ARC is built from the ground up on a unified cloud architecture.

Key benefits of ARC include:

• Real-time data sync across departments (sales, service, finance).

• Built-in CRM and customer lifecycle management.

• Smart service scheduling and repair order management.

• Mobile-first interface with intuitive design.

• Secure, compliant cloud infrastructure.

Digital Retail: A Seamless Omnichannel Experience

One of Tekion’s standout features is its digital retail platform, which allows customers to purchase vehicles online as easily as ordering products from an e-commerce site. Customers can:

• Browse real-time inventory.

• Use payment calculators with full tax and fee integration.

• Apply for financing.

• Complete paperwork digitally.

• Schedule vehicle delivery or pickup.

What sets Tekion’s digital retailing apart is its deep integration with dealership systems, meaning prices, inventory, trade-ins, and services are always accurate and up to date.

Dealership staff can also assist customers through live online sessions, helping close deals faster and more efficiently.

Unifying OEMs and Dealerships

Tekion’s Automotive Enterprise Cloud (AEC) acts as a bridge between automakers and retailers. OEMs can now maintain consistent branding, manage digital storefronts, and deliver personalized experiences directly through Tekion’s platform.

Features include:

• Real-time inventory synchronization.

• OEM-configured vehicle customization tools.

• Integrated e-signature and payment systems.

• Retailer appointment scheduling and pricing tools.

• Enterprise-level analytics dashboards.

This helps OEMs gain more visibility and control over the retail process while supporting their dealership networks with cutting-edge tools.

Driving Measurable Results

Tekion’s platform doesn’t just promise better outcomes—it delivers them. Dealerships using Tekion have reported:

• Up to $9,000/month increase in accessory upsells.

• As much as $36,000/month in additional revenue from AI-driven service recommendations.

• $64,000+ annual savings from reducing toner, paper, and print-related costs.

• 180 hours saved monthly through workflow automation.

• 23% drop in aged accounts receivable.

• 31% boost in Per Vehicle Retailed (PVR).

These performance improvements translate directly into higher margins, better customer satisfaction, and stronger long-term growth.

Tekion Pay: Simplified, Integrated Transactions

Tekion also offers Tekion Pay, a secure, integrated payment platform that helps dealerships accept and manage transactions both online and in person. With automated reconciliation, built-in compliance, and real-time reporting, Tekion Pay is a key part of streamlining operations and improving the financial side of the business.

Security and Compliance First

In today’s data-sensitive world, Tekion prioritizes platform security and compliance with global standards. It’s certified across multiple frameworks, including:

• ISO/IEC 27001 (Information Security)

• ISO/IEC 27701 (Privacy Information Management)

• SOC 1 & SOC 2 Type II (Operational controls and data protection)

Data encryption, secure access, and compliance auditing are all built into the platform by design.

Open APIs and Partner Ecosystem

Unlike closed legacy systems, Tekion offers an open API platform that encourages innovation and third-party integration. Its self-service Developer Hub gives vendors and partners the tools to build on Tekion, while the Integration Hub facilitates secure, real-time data exchange.

Whether it’s finance, insurance, inventory, or marketing—developers can plug into Tekion to extend its capabilities even further.

Global Reach and Rapid Growth

Tekion is expanding rapidly, with headquarters in California and global offices in India, the UK, Canada, and Europe. It recently expanded its development hub in Bengaluru, India, with a new 240,000 sq. ft. office to support over 2,300 team members. This investment supports its continued growth in engineering, design, AI, and customer support.

Backed by Industry Giants

In July 2024, Tekion raised $200 million in a new funding round led by Dragoneer Investment Group, bringing its total funding to $640 million and pushing its valuation to over $4 billion. The company was also listed on Forbes Cloud 100 in 2023, making it the only auto retail platform to be featured.

This capital injection is set to further accelerate Tekion’s R&D, international expansion, and go-to-market efforts.

Taking On the Giants

Tekion’s rise hasn’t gone unnoticed. In late 2024, the company filed a lawsuit against industry incumbent CDK Global, accusing it of anti-competitive practices and data blocking. In response, CDK filed a countersuit in early 2025.

These legal battles underscore Tekion’s disruptive presence in a market long dominated by legacy players. The company isn’t just offering a new platform—it’s challenging outdated models head-on.

Tekion is not just another software company—it’s a vision for the future of automotive retail. With a modern architecture, intelligent automation, and a strong focus on user experience, Tekion empowers dealerships and OEMs to thrive in a digital-first world.