Tekion, a California-based technology startup, is redefining the way auto dealerships function by offering them an innovative, user-friendly software solution. The Automotive Retail Cloud software, created by Tekion, is aimed to enhance the retail element of the auto business, which includes purchasing, financing, servicing, and maintenance of automobiles.
According to the CEO of Tekion, Senthil Vijayan, the auto business is one of the fastest developing industries, with electric vehicles, autonomous automobiles, subscription services, and ride-hailing efforts among the breakthrough ideas defining the future. However, the dealership tech system has not yet caught up on the retail side of the company.
Breaking into the competitive DMS (Dealer Management System) industry, where established businesses like Reynolds & Reynolds and CDK Global have existed for years, was a huge hurdle for Tekion. However, the business has managed to convert dealers that were on the same DMS systems for 40 years, according to Vijayan. He stated that the firm had to tell sellers why they were different and could make a fundamental difference to their business to assist them to level the playing field with this technology and have the advantage to operate now and in the future.
Vijayan described Tekion’s Automotive Retail Cloud software as “very simple and beautiful”, adding that it’s how he believes software should be. “Humans do a lot of the work, but modern technology makes that job easy and straightforward. If it makes the task more complicated, there’s simply no purpose for it.”
More than 600 dealerships have joined up with Tekion and the business believes roughly 50 more joinings each month. There are also a few hundred vendors on the site via business programmes. Additionally, the investment arms of automotive and manufacturing businesses such as BMW I Ventures, Airbus Ventures, General Motors, Hyundai Motor Co., and Mitsubishi-Renault-Nissan Alliance, among others, have financially supported the company.
According to a case study by UX Reactor, which worked with the firm for 18 months on the development and launch of its Automotive Retail Cloud software, the value of Tekion quadrupled to $3.5 billion in 2021 from more than $1 billion in 2020.
In conclusion, Tekion is altering the way car dealerships function by offering them an easy-to-use software solution that enhances the retail part of the auto sector. With more than 600 dealerships now signed up and the support of numerous large automotive and manufacturing industries, Tekion is well on its way to becoming a key player in the DMS industry.
