Founded in 2016 by former Tesla CIO Jay Vijayan, Tekion launched the Automotive Retail Cloud (ARC) to modernize dealership operations with a fully cloud-native, AI-powered platform. Since then, it has expanded into two other integrated clouds—Automotive Enterprise Cloud (AEC) and Automotive Partner Cloud (APC)—forming a cohesive ecosystem that unites dealers, OEMs, and third-party partners.
1. Core Platforms: ARC, AEC APC
Automotive Retail Cloud (ARC)
Tekion’s flagship Dealer Management System offers CRM, digital retail, service, parts, analytics, accounting, and Tekion Pay—everything accessible via desktop or mobile and updated with zero downtime .Automotive Enterprise Cloud (AEC)
Launched in March 2022, AEC enables OEMs to connect brand websites with dealer inventory through configurators, e-sign, payments, and delivery scheduling—creating seamless brand-to-store transactions .Automotive Partner Cloud (APC)
With open APIs and over 250 certified integrations, APC empowers seamless connections with partners specializing in finance, parts, marketing, and title services .
2. Cloud-Native Advantage
Built on Azure Kubernetes Service using Cosmos DB, ARC delivers scalable, secure operations with frequent, zero-downtime feature updates—eliminating legacy version lock-in .
3. AI That Takes Action
Smart Communication (GPT-Powered CRM)
Rolled out in late 2023, this feature analyzes incoming communication, drafts personalized responses, and is used in 75% of outbound messaging—saving brokers 30–45 minutes daily and boosting response times by ~41% .
AI Agents for Service
Launched March 2025, Tekion AI Agent for Service autonomously handles shop workflows—reviewing diagnostics, securing approvals, scheduling repairs, and updating customers. It was recently named “Personalized AI Agent Solution of the Year” .
Dealer Finley Ewing IV confirms:
“Tekion AI is revolutionizing our service department…seeing AI recognize deferred recommendations…leads to safer cars on the road.”
4. Key ARC Features
Digital Retail: Enables a complete online shopping experience—inventory, negotiation, e-sign, payment, and delivery—fully integrated with ARC and CRM .
Digital Service Experience: Technicians add MPVI media; customers review, approve work, and pay online .
Connected Dealership NLP Analytics Bot: Real-time operations and natural language queries for insights like “How many cars sold today?” .
Tekion Pay: PCI-compliant payment system, BNPL support (Affirm), automated receipts, and reconciliation .
5. Market Reach Performance
Supports over 40 OEMs, processes $43 billion+ in transactions, and manages 3 million vehicle sales, 24 million services, and 225 million parts .
Dealers report 31% profitability improvement and 23% reduction in operational time .
In December 2020, FCA (Chrysler, Dodge, etc.) certified ARC as an approved DMS platform .
6. Dealer Feedback: What Works What Doesn’t
Strengths
Mobile-first UX: “Infinitely better than CDK,” praised for intuitive design (r/serviceadvisors) .
AI-Driven Efficiency: Smart Communication and AI Agents enhance productivity and customer experience .
Areas to Improve
Parts Warranty Modules: Viewed as sluggish with buggy workflows .
Performance Issues: Reports of lag during peak hours or after updates .
Support Onboarding: Inconsistent training and support follow-up .
7. Competitive Legal Landscape
Antitrust suit: In Dec 2024, Tekion filed against CDK Global for anti-competitive data lock-in.
Counterclaim: CDK countersued in Feb 2025, alleging Tekion used hacking routes to access dealer data .
8. Growth Metrics Future Plans
Raised $150M Series C (2020) and $200M (2024) led by Dragoneer—valued over $4 billion.
Team of 2,500+ across North America, Europe, and India.
Targeted profitability by 2025, with potential IPO to follow .
9. Audience-Focused Takeaways
| Stakeholder | Advantages | Cautions |
|---|---|---|
| Dealerships | Modern workflows, full AI/CRM integration, mobile access | Vet parts/warranty workflows; plan training |
| OEMs | Unified consumer journey, inventory visibility via AEC | Integration maturity varies OEM to OEM |
| Tech Partners | APC allows deep integration with marketplace flexibility | Must certify API performance |
| Investors | Strong growth, AI leadership, legal positioning | Track profitability execution, tech stability |
Looking Ahead
AI Expansion: New agents to cover sales, parts, accounting, BDC workflows.
Geographic Growth: Focus on Europe Asia-Pacific via OEM partnerships.
IPO Horizon: Post-profitability with ARR growth trending upward.
Product Enhancements: Improved parts flow, accounting tools, and system performance.
Tekion is more than a next-gen DMS—it's a comprehensive catalyst for digitizing automotive retail. With cloud scalability, AI-led automation, and full ecosystem integration, it’s a powerful alternative to monolithic legacy systems.
Although parts modules, performance consistency, and support need ongoing improvement, Tekion’s innovation drive, proven ROI, and aggressive roadmap make it a formidable contender shaping the future of car retail.
