In today’s high-speed, customer-first marketplace, traditional dealership software is falling behind. Outdated systems—often installed decades ago—are siloed, inflexible, and incapable of meeting modern demands. Enter Tekion: a next-generation, cloud-native SaaS platform founded in 2016 by ex-Tesla CIO Jay Vijayan, aimed at transforming the way vehicles are sold, serviced, and managed across OEMs and dealerships .
1. What is Tekion? The Three-Cloud Architecture
Tekion operates through a unified platform divided into three core clouds:
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Automotive Retail Cloud (ARC): A full-featured, cloud-native Dealer Management System (DMS) covering sales, CRM, digital retail, fixed ops, accounting, analytics, and Tekion Pay for payments—all accessible from any device .
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Automotive Enterprise Cloud (AEC): Connects OEM brand sites directly to dealer inventory and digital buying tools—complete with e-sign, configurator, payment, and scheduling options—enabling seamless brand-to-store online purchase journeys .
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Automotive Partner Cloud (APC): Supports over 250 integrations (parts, marketing, finance, accounting), empowering dealers to augment workflows via open APIs.
2. Key Strengths & Innovations
a. Cloud‑Native & Mobile‑First
ARC runs entirely in the cloud, ensuring fast scalability, centralized updates, and high data security. Being mobile-first, it supports on-the-go operations—from technicians on tablets to managers monitoring KPIs remotely .
b. AI‑Embedded Platform
AI permeates Tekion’s core functions:
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Smart Communication CRM Engine: Automates document prep, email summarization, and follow-ups using generative and natural language AI, improving communication efficiency .
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Predictive Fixed Ops: Recommends service actions and parts intelligently before vehicle arrival .
Recent developments include Tekion AI Agents, launched mid‑2025, which intelligently automate service workflows and customer notifications .
c. Digital Retail Ready
Tekion’s digital retail allows customers to:
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Browse real-time inventory
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Configure, e‑sign, pay, and schedule delivery
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Complete end-to-end deals online
All within a unified dealer ecosystem .
d. Tekion Pay & Accounting
Tekion Pay is a PCI-compliant, terminal-embedded tool that supports traditional and BNPL payments (e.g., Affirm), automates reconciliation, issues digital receipts, and accelerates cashier processes .
3. Market Momentum & Traction
Tekion has shown remarkable growth:
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Integrated with 52 OEM brands, including GM, Ford, Honda, Hyundai, Jeep, Toyota .
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Platform passes $43+ billion in vehicle & parts transactions, with 3 million vehicles sold, 24 million serviced, and 225 million parts sold .
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Dealers report 31% increase in profitability and 23% operational time saved .
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Finalist for the 2021 Automotive News PACE award for enabling online competition .
Tekion operates on Azure AKS, Cosmos DB, and incorporates ClickHouse Cloud for internal observability—enhancing performance and analytics at scale .
4. Dealer Reviews & Real-World Feedback
Positive Feedback
From r/askcarsales to r/serviceadvisors, many users highlight:
“Tekion CRM is the most advanced automotive CRM rule builder…improving every 2 to 3 weeks with over‑the‑cloud updates” .
“Once you catch on it’s good…overall a big upgrade over CDK” .
Other dealers praise the faster RO approval flows and enforceable digital processes .
Constructive Criticism
However, several users flag:
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Parts & fixed ops friction: multi-step workflows, lag, and parts-day inefficiency .
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Training gaps: Many report deploying Tekion with just an hour or two of onboarding, leading to low adoption .
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Performance hiccups: Sluggish behavior during peak periods and after upgrades .
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Support inconsistencies: Mixed reviews on helpdesk responsiveness, especially around North America accounting expertise .
5. Competition & Regulatory Posture
Tekion challenges legacy giants like Reynolds & Reynolds and CDK Global:
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In December 2024, Tekion sued CDK alleging anti-competitive practices tied to data access .
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CDK responded by February 2025, counter-suing over alleged data scraping tactics.
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The high-profile lawsuit reflects broader industry tensions as Tekion pushes open data and cloud-first disruption.
6. Roadmap & Future Prospects
Tekion’s near-future priorities include:
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Profitability by 2025, as confirmed by CEO Vijayan .
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Deepening AI integration—Tekion AI Agents are only the start; expect automation across all stages.
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Geographic expansion, especially in Europe and Asia-Pacific, alongside new OEM partnerships.
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Potential IPO as profitability stabilizes and scale continues.
7. Strategic Takeaways
| Stakeholder | Takeaways |
|---|---|
| Dealerships | ARC offers streamlined, modern workflows—especially in sales, CRM, and digital retail. But expect training investment and to test parts/workflow early. |
| OEMs | AEC provides direct, branded digital configurators and unified customer journeys. Ideal for EV and traditional brands wanting control over online sales experiences. |
| Tech Partners | APC’s open APIs invite integration for parts, finance, marketing, and analytics. Ideal for expanding SaaS partnership ecosystems. |
| Investors & Analysts | Tekion’s fast execution, OEM backing, legal assertiveness, and AI capabilities signal strong growth. Watch legal navigations and profitability progression. |
Tekion is pushing the automotive retail industry into the tomorrow—where modern, cloud-native, AI-enabled systems take center stage. With powerful tools like ARC, AEC, and APC, Tekion aligns the needs of dealerships, OEMs, and end-consumers into one digitally cohesive platform.
While some dealership functions—especially parts and fixed ops—face teething issues, Tekion’s relentless innovation, performance analytics, and scalable infrastructure position it well for widespread adoption.
For dealerships, a phased adoption (starting with sales and digital retail, then parts & accounting) coupled with robust training will ease the transition. OEMs should explore AEC to gain control of online brand-to-store sales pipelines. Meanwhile, partners can tap into APC’s open integration strategy.Personalized ML-driven automotive technology gives dealers an edge to sell more and provide the best experiences while saving money and improving customer loyalty.
