New SODA V tool is set to deliver more affordable vehicles, faster production cycles, and advanced, tech-forward cars for consumers.
The European automotive industry is facing a tough road ahead, with stagnating growth, shrinking revenues, and fierce competition from the Asian market. Sales have dropped by nearly 19% in 2023, posing a particular challenge for original equipment manufacturers (OEMs) and startups alike. Early-stage funding for automotive startups has sharply declined, plummeting from $12.2 billion in 2021 to just $3.7 billion in 2023, leading to a wave of shutdowns.
“The previous status quo of creating vehicles no longer works,” said Glenn Saint, Commercial Director at Equipmake and a representative of the Society of Motor Manufacturers and Traders (SMMT) in the UK. “Cars are not only mechanical products anymore—customers expect software-driven, feature-rich mobility experiences. We need innovative tools to help automakers (and suppliers) quickly overcome the challenge of creating a product comparable to high-end technology products and at the cost of Chinese cars.”
Amid these challenges, UK-based tech company Soda.Auto is making waves with the launch of its flagship product, SODA V. This AI-driven tool, which took 1.5 years and $6 million to develop, is designed to streamline the process of building software-defined vehicles (SDVs), covering every stage from concept to certification.
SODA V promises to transform the way automakers develop vehicles. With this tool, car manufacturers can reduce development timelines from the traditional five years to just 200 days. Even more remarkably, the platform enables development on a budget of $600,000, compared to the typical industry cost of $40 million. The knock-on effect is expected to be more affordable vehicles for consumers, faster production cycles, and more advanced, tech-forward cars.
“The automotive industry is undergoing a radical transformation, driven by the need for faster innovation cycles,” said Matas Simonavicius, former CTO of Charge Cars and Co-Founder at Xmotions. “Companies that can develop, test, and integrate new vehicle features in as little as seven days with SODA.Auto.”
What makes SODA V stand out is its ability to cover the entire vehicle development cycle, replacing a suite of commonly used tools—including Siemens Polarion, IBM Doors, Confluence, and Vector—with a single, streamlined interface. This all-in-one solution is expected to significantly cut down on development costs and increase production speed.
Steve Pegg, CEO at HELIXX, emphasized the growing need for such tools in today’s market. “We need innovative tools that significantly save on development costs, accelerate distribution, and fulfill the low-cost mobility demands. Implementing software solutions in car development provided by traditional, established brands does not align with our budget and our vision for hyper-connected in-service capabilities.”
Soda.Auto has ambitious goals, aiming to double its client base within the next year and supporting the development of over 150,000 software-defined vehicles in Western markets. The company projects that it will play a key role in shaping the future of the SDV industry and anticipates reaching $100 million in revenue by 2027, according to CEO Sergey Malygin.
As the automotive sector continues to evolve, SODA V could prove to be a game-changer, enabling faster, more cost-effective development and helping automakers meet the growing demand for tech-driven, affordable cars.
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