The Technology BMW Chose: Digital Innovation from Test Drives to Vehicle Sales

Mr. A visited a car dealership near his home in order to test-drive a vehicle he had long wanted to purchase before making a final decision. He scheduled a test drive and arrived on the appointed date, but due to an error in the handwritten schedule records, the vehicle had not arrived, forcing him to reschedule the test drive.

Test driving is one of the most important steps in purchasing a car. There is a significant difference between simply viewing a vehicle displayed under bright showroom lights and actually driving it on the road. Only by getting behind the wheel and carefully examining various aspects can customers clearly understand a car’s strengths and weaknesses.

However, arranging a test drive is not a simple task. Customers must search for dealerships individually, check whether the desired vehicle is available, and coordinate schedules such as date, time, and location by contacting sales representatives. The process is often cumbersome and inconvenient.

A startup drawing attention for improving efficiency in automotive distribution by digitally automating this test-drive process—and ultimately increasing sales conversion is EPIKAR, a company providing Dealer Management Solutions (DMS).

From Korea’s First Car Subscription Service to the Nation’s Only DMS Provider

Founded in 2016, EPIKAR began its business as Korea’s first car subscription service, allowing customers to switch vehicles periodically. While operating the subscription model, the company recognized a strong need for innovation within dealership distribution operations and decided to pivot its business toward the current DMS platform.

Han Bosuk, CEO of EPIKAR, said,
“The subscription service allowed dealerships to generate additional revenue from idle vehicles. At its core, our business was always about improving dealership efficiency, which led us to develop and provide the DMS.”

Currently, most automotive sales operations are conducted through analog methods, including face to face interactions and handwritten documentation. By utilizing EPIKAR’s Software-as-a-Service (SaaS)based DMS, automakers and dealerships can significantly improve operational efficiency, reduce costs, and enhance the customer experience.

Two Core Solutions: BTS and IWS

Improving Dealer Efficiency and Managing Potential Customers

BTS automates test drive applications, approvals, vehicle assignments, and management, addressing inefficiencies in dealership test-drive workflows. Customers can select their desired vehicle, check showroom availability and schedules at once, and make real-time reservations. Employees are no longer required to handle complex paperwork.

Currently, more than 1,000 test-drive vehicles are managed through BTS. The platform also provides Customer Relationship Management (CRM) services for sales consultants, enabling the delivery of test-drive coupons and aftersales discount vouchers to potential customers further increasing purchase likelihood.

IWS enables real-time monitoring of operations across 79 after-sales service centers operated by dealerships. The system tracks vehicle entry and exit status, identifies vehicle locations within service centers, and allows flexible vehicle allocation based on supply and demand.

License plates are recognized the moment vehicles enter or leave facilities, enabling immediate status verification. Real-time monitoring of vehicles within workshops maximizes operational efficiency. By predicting repair completion times in advance, customer waiting times are reduced. EPIKAR is currently accumulating approximately 4 million maintenance history records annually.

At present, EPIKAR is the only company in Korea providing such services specifically for dealerships. Han stated,
“Despite Korea’s advanced IT infrastructure, there was no system focused on improving dealership efficiency. We saw strong potential in this market and decided to enter.”

Break-Even Achieved and U.S. Subsidiary Established

After pivoting to the DMS business model, EPIKAR achieved its break-even point (BEP) last year and continues to demonstrate stable growth. The company is pursuing expansion strategies to secure additional customers beyond BMW and has established a U.S. subsidiary to explore overseas markets.

EPIKAR is also continuing to enhance its technology through research and development. Recently, the company filed a patent for an artificial intelligence–based system designed to reduce vehicle repair times at service centers. The system accurately predicts time required for each process, resolves bottlenecks, and improves overall workflow efficiency.

Han explained,
“By calculating labor costs, parts costs, and estimated completion times by process, the system supports more efficient service center operations and allows customers to receive more accurate information regarding time and cost from vehicle check-in to delivery.”

He added,
“Although the business has undergone many changes, the essence of innovation has remained the same. We have plotted many points over time now we are in the process of connecting those points.”

Break-Even Achieved and U.S. Subsidiary Established

EPIKAR’s growth potential has been recognized through its selection for KB Financial Group’s startup acceleration program, KB Starters. The program is operated by KB Innovation Hub, which identifies and nurtures startups with strong innovation capacity and growth potential.

Han said,
“We are looking for collaboration opportunities with all KB Financial Group affiliates. With such strong support, we aim to deliver even more advanced and innovative services.”

At the end of last year, EPIKAR secured Series A investment (amount undisclosed) from a state-owned bank, establishing a foundation for growth. The company is preparing follow-on funding rounds to accelerate expansion into North America, Europe, and Southeast Asia.

EPIKAR also recently appointed Jang Young-seung, a first-generation Korean venture entrepreneur and former head of the Seoul Business Agency (now Seoul Business Foundation), as Chief Strategy Officer (CSO) to strengthen its global expansion and future mobility strategy.

Han emphasized:

“Our goal is to ensure that not only car enthusiasts but everyday consumers can experience test drives, vehicle purchases, and after-sales service comfortably and without stress—through EPIKAR.”