Transforming Automotive Retail: The Power of Tekion’s AI‑Native Cloud Platform

In today’s fast-evolving automotive landscape, Tekion has emerged as a game‑changer—ushering dealerships and OEMs into a new era of digital retailing. Launched in 2016 by former Tesla CIO Jay Vijayan, Tekion has steadily carved its place as the first truly cloud-native, AI-powered automotive retail platform that seamlessly unifies dealers, manufacturers, and customers.

A Unified, AI-Driven Ecosystem

At its core, Tekion is a singular, AI-native platform designed to connect every facet of automotive retail operations—from customer browsing to final sale. With capabilities such as Tekion AI, DMS (Dealer Management System), CRM, Digital Retail, Virtual-to-Visit Experiences, Advanced Analytics, Open APIs, Service Experience, and Tekion Pay, Tekion provides a comprehensive ecosystem tailored to drive efficiency, improve experiences, and boost profitability

This integrated approach ensures customers experience a seamless journey—whether they’re interacting in-store or online—while dealerships gain centralized control over their operations.

Personalization, Profitability & Productivity

Tekion amplifies profitability by leveraging AI for deeper personalization and smarter selling. Machine learning insights enable dealerships to up-sell accessories, recommend services, and cross-sell effectively, all while increasing customer engagement

Metrics showcased on the Tekion platform speak volumes:

  • Up to $9,000 monthly generated in accessory upsells

  • Up to $36,000 monthly from AI-driven service upsells

  • Roughly $64,000 yearly in savings on paper and toner

  • 180 hours per month of reduced unapplied time

  • Up to 23% reduction in aged accounts receivable

  • Up to 31% increase in Per Vehicle Retailed (PVR)

These figures highlight the transformative potential of automation, data, and AI working in harmony.

Security, Compliance & Developer Accessibility

Tekion places a premium on security. The platform complies with rigorous standards—including ISO 27001, ISO 27701, SOC 1, and SOC 2 Type II—and provides robust, encrypted data protection across all operations .

For developers and partners, Tekion’s open API ecosystem is a standout advantage. Equipped with self‑serve tools and an Integrations Hub, Tekion facilitates seamless, real‑time data integration—empowering third parties to build and innovate on top of the platform .

Tekion AI: Autonomous Agents That Work for You

Beyond recommendations, Tekion AI introduces autonomous agents that execute end-to-end dealership workflows.

AI Agent for Service

This agent automates fixed ops—from diagnosing repairs and initiating approvals to dispatching next steps—minimizing manual labor and improving turnaround times.

Other AI-driven features include:

  • Generative AI for Lead Communication: Personalized summaries and automated follow-ups enhance sales conversions.

  • Data Deduplication & CRM Accuracy: Eliminates redundant customer records and maintains clean, unified data.

  • Service Recommendations & ML Dashboards: Provide intelligence for upselling, operational transparency, and predictive insights .

Digital Retail: Redefining the Car-Buying Experience

Tekion’s Digital Retail tool delivers a truly end-to-end vehicle purchasing process—fully integrated with ARC DMS and CRM . Its key features:

  • Smart AI Chatbot to help customers and lighten dealer workload.

  • Transparent Payment Calculators that factor in taxes and fees.

  • Live Online Sessions for real-time negotiation and sales.

  • A unified Sales & Checkout Concierge centralizing document processing, configuration, payment, and delivery .

This creates a streamlined, transparent, omni-channel experience—from showroom to checkout.

OEM Integration via Automotive Enterprise Cloud

Recognizing the need for a connected journey between manufacturers and dealers, Tekion’s Automotive Enterprise Cloud (AEC) bridges the gap—linking OEM brand sites to dealership inventory and workflows .

Key features include:

  • Unified branding between OEM and dealer websites.

  • Tools for e-sign, payments, scheduling, and secure checkout.

  • Vehicle configurators for customization.

  • In-store retailer hubs for appointment management and pricing.

  • Real-time analytics: tracking website behavior, sales funnels, team performance and more .

This OEM-centric layer empowers brands to maintain control over the consumer journey while integrating dealers into the broader ecosystem.

Recognition & Market Momentum

  • Tekion was ranked in Forbes’ 2023 Cloud 100, notably as the only automotive retail platform in the list .

  • As of 2023, Tekion achieved ~$100 million in annual revenue with a staggering 97% year-over-year growth, serving over 2,000 automotive retailers, multiple OEMs, and 250+ ecosystem partners .

  • The company has raised a total of $640 million, with a fresh $200 million round in July 2024 led by Dragoneer, valuing Tekion at over $4 billion .

Global Growth & Expansion

Founded in California, Tekion has global operations:

  • APAC HQ in Bengaluru, regional centre in Chennai, plus offices across Europe, Canada, and the UK .

  • In early 2025, Tekion secured 240,000 sq ft in Bengaluru—expanding capacity for over 2,300 employees and adding 300+ AI, engineering, design, and product management professionals .

Legal Battles Reflecting Market Impact

Tekion is actively challenging market incumbents:

  • In December 2024, Tekion sued CDK Global, accusing it of antitrust violations—hindering dealer transitions by withholding data .

  • In February 2025, CDK counter-sued, accusing Tekion of orchestrating a “hacking campaign” to obtain sensitive dealer data

These legal maneuvers highlight Tekion’s disruptive influence on a legacy-dominated market.

Building Tomorrow’s Automotive Retail

Tekion’s approach—unifying operations with AI-driven automation, digital sales, open integration, and OEM connectivity—is reshaping automotive retail. Its strengths lie in:

  1. AI Core: Autonomous agents deliver real value, not just insights.

  2. Cloud Native: Modern architecture ensures scalability, security, and flexibility.

  3. End‑to‑End: Full-stack coverage—from OEM to service and everything in between.

  4. Open APIs: Collaboration and extensibility are at the forefront.

  5. Global Scale: Explosive growth and aggressive expansion in technology hubs like Bengaluru.

  6. Recognition & Funding: High valuation and industry acclaim affirm its vision and execution.

Tekion is more than a software provider—it’s a revolution in automotive retail. By combining cutting-edge AI, a unified cloud-native platform, seamless OEM and dealer integration, and a modern user experience, Tekion is redefining what it means to buy, service, and manage vehicles.

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