By: Sergey Malygin
What are the main challenges facing the CEO of an automotive startup? How do AI risks and the future of autonomous vehicles come into play? Sergey Malygin, CEO of SODA.Auto, shares the company’s plans and what to expect in the automotive industry.
Challenges for the CEO
First of all, as the CEO of a tech startup, I’m fortunate to have a fantastic team. While building a solid team can be challenging for many startups, it hasn’t been for us. From day one, we’ve had a solid group of people, which has been a massive advantage for SODA.Auto. Many of our team members joined us from Arrival, a UK-based EV manufacturer, when it faced difficulties and had to make redundancies in early 2023. This has allowed us to focus on executing our vision rather than spending time on recruitment.
From a technology point of view, AI presents its own set of challenges. From the start, we recognized AI’s critical role, so we quickly hired a company-level Head of AI to align our strategy and products, especially in managing the technology.
Although our work isn’t simple, I prefer simplifying things rather than getting bogged down by complexity. We deal with cutting-edge technologies like SDV, digital twins, AI, and a range of programming languages. For example, we use MATLAB Simulink for vehicle control systems, Python for web development, and low-level C++ and custom hardware design. Our simulation environment is based on Unreal Engine, and all these technologies form a cohesive solution called Soda V. This integration is challenging. Still, we’ve handled it well, leveraging our automotive background to ensure we meet cybersecurity, safety, and quality regulations.
I don’t view regulations as a challenge; they are an opportunity to optimize and automate processes using AI and digital twin technologies. For example, we fully automated compliance checks with AI, so we can ensure that we cover all regulatory requirements by the proposed vehicle/feature design right from the beginning.
What’s more challenging is the automotive industry’s slow pace and the current financial climate. Even when companies recognize the need for change, processes such as budgets, approvals, and communication can delay implementation for years. Many companies are still hesitant to embrace the new reality, where Chinese firms are gaining dominance, and some Western automakers might face bankruptcy if they don’t adapt. Convincing them that the change is required remains a significant hurdle.
While fundraising has improved, navigating the current investment climate continues to be one of our major challenges. Thankfully, our technology is at the cutting edge, encompassing SDV, autonomous driving, digital twins, and AI.
Scaling Business
When it comes to scaling our business, several vital opportunities stand out. First, the rise of Software-Defined Vehicles (SDVs) is a significant trend, with a rapidly growing demand for tools and technologies that support SDVs. This aligns with what we offer. Second, AI has become integral to modern life and business. It’s hard to imagine any process or activity without AI involvement today, and we’ve embedded AI into the core of our products from the start. This positions us to deliver clear customer benefits, demonstrating how AI can drive cost-savings and revenue-generation opportunities.
Another significant opportunity comes from the dominance of Chinese companies in the automotive industry. This presents a challenge for many Western automakers but also an opening for us to introduce our innovative, AI-driven solutions, helping them advance in software innovation.
Our approach—integrating digital twins, AI, and agile practices like continuous delivery and testing—isn’t confined to the automotive sector. These methods are also applicable to aerospace, marine, rail, and robotics industries. We’re expanding into these areas, offering flexible solutions. Additionally, our product is accessible globally via the web, so we’re not limited by geography. While the UK, Europe, and the US are key markets, we’re well-positioned to reach customers worldwide.
Regarding risks, particularly with AI, privacy and data protection are significant concerns. We collaborate closely with leading AI providers such as OpenAI, Microsoft, and Amazon to ensure data is managed and protected according to stringent security standards. We support various modes of operation, including on-premises data storage for enterprise customers, ensuring sensitive data remains secure. Cybersecurity and regulatory compliance are our primary priorities, and we’re confident in our ability to meet high standards. We don’t foresee any significant AI-specific risks we aren’t already addressing.
Competitive Edge
Many companies offer tools, and others offer software development services for the automotive industry, but what sets SODA apart is how we package everything into a single, cohesive solution. Instead of relying on 15 separate tools for software engineering, SODA provides a complete solution that covers everything from vehicle-level concept design to system architecture, implementation, validation, and even vehicle certification—all within one product.
We cover vehicle functionality from A to Z with a feature library that includes fully reusable software components for basic vehicle functions, like door and window control, and advanced features such as traction control, torque vectoring, and ADAS (Advanced Driver Assistance Systems). This is accessible remotely, offering a premium user experience from anywhere in the world.
Additionally, we offer turnkey software delivery, allowing companies to entrust us with their entire vehicle project and receive results within a specified timeframe—much faster and less costly than traditional methods. This makes us an excellent choice for startups lacking in-house expertise and larger organizations transitioning to a software-defined vehicle approach.
Many companies face challenges with this transition, as seen with examples like Cariad at Volkswagen. However, with our product, expertise, and ability to deliver on time and within budget, we offer a truly unique solution in the market.
Future of Autonomous Vehicles
Autonomous vehicles are no longer just a futuristic idea—they’re here today. The core technology is already in place, with AI making rapid strides and learning more effectively. What’s still needed is extensive testing on public roads to validate these systems fully. Significant progress has been made, particularly in California’s Bay Area, where autonomous vehicles have been operating for a while.
However, there are two main hurdles to widespread adoption. First, public perception and legal responsibility need to be sorted out. If an accident occurs, who is accountable—the manufacturer or the company operating the vehicle? These issues are still being worked out. Second, while individual autonomous vehicles work well, we must optimize them for fleet-level operations. Vehicles must communicate with each other in real-time to avoid conflicts and manage traffic smoothly, which is still a work in progress.
While Tesla pioneered vertical integration and innovative manufacturing, several competitors now also offer advanced autonomous driving solutions.
Looking ahead, AI and sensor technology are improving vehicle autonomy in various conditions. However, we need further development in vehicle-to-vehicle communication and fleet management for large-scale adoption.
Some Advice
Everything around us presents both risks and opportunities. With new technologies emerging daily, what once seemed impossible is now achievable. My advice on product innovation is to explore and integrate emerging technologies continuously. Never stop researching—there’s always something better out there, and staying informed and up-to-date is essential. Make innovation an ongoing process, not just something you focus on until your product launches.
AI is a prime example. Leveraging AI is crucial today. As I told my team last year, and I’ll say again, you’re likely missing out if you’re starting or running a tech company and aren’t incorporating AI. AI offers tangible benefits, and your competitors certainly will if you don’t use it.
Published By: Aize Perez
