Automotive Division

Division Strategy
Strengths of the Division
Global Operations
Business Overview
Organization
Latest Information
Links

With automotive assembly and wholesale and retail sales as its core businesses, the Automotive Division develops its operations in growing markets, such as Asia, Latin America, and Eastern Europe, as well as in mature markets, such as Japan and the United States. In addition, this division is actively enhancing its auto-financing business while developing automotive-related services that meet the needs of the changing times.

Division Strategy

We will strengthen the functions in automobile sales as a core business, build business bases in new fields, and ultimately contribute to a prosperous mobility society.

Tatsuhiko Kanetake

Executive Officer, COO
Automotive Division

The Automotive Division has actively pursued a wide range of business throughout its history. Despite the various changes in the operating environment that have impacted our business, we have consistently risen to the challenge and overcome such adversity. We strive to learn from each setback and have continued to transform the division to become a more resilient organization by implementing ongoing structural reforms and taking on new challenges. The Automotive Division's strategy features the following key components: 1) Identification and application of best practices that are adapted to each market by leveraging our experience handling a wide variety of brands and products in many different regions, 2) Embedment of the most suitable frameworks in place and thoroughness all the things, and 3) Enhancement of the success rate for new business development through the accumulation of knowledge gained from a constant process of trial and error in the fieldwork. These undertakings have strengthened our organization by driving the growth of our people and fostering a common sensibility among our team.

Our growth strategy is founded on keywords such as "Global Niche Top (GNT)," "market dominance," and "value chain." We will strengthen our business foundation by targeting specific markets to 1) Secure a competitive advantage, 2) Boost customer loyalty, and 3) Establish value chains that combine multiple functions including wholesale, retail, used car sales, financing, auto services, and logistics.

I firmly believe that our successes thus far are a product of the teamwork we exercise in our daily endeavors. We have now entered a phase where we will achieve greater successes and reach new heights as an organization, and I am confident that we will realize our vision for the Automotive Division.

Strengths of the Division

In operation for over 50 years in more than 50 countries

Locally based sales and marketing force
Diverse human resources and global business management strategy

Suitable frameworks and thoroughness in all the things
Optimization by implementing best practices
Capabilities of
investment
execution and business
development

Experience and insights gained through extensive fieldwork
Business asset portfolio that includes expansion into new business areas

Global Operations

Business Map

Distributor Business: Sojitz de Puerto Rico Corporation (Puerto Rico)

Distributor Business: Silaba Motors S.A. (Panama)

Dealership Business: Dutton Group (Australia)

Business Overview

■ Distributor Business

Sojitz is expanding its distributor business in growth markets including Asia and Latin America. We are engaged in business including the sale of Hyundai vehicles in Puerto Rico, the sale of Kia and Mazda vehicles in Panama, and the assembly and sale of Hyundai vehicles in Pakistan. We plan to develop operations for selling competitive automobile brands in promising markets boasting robust demand.

■ Dealership Business

We are expanding our authorized dealership business for premium brand vehicles, in which we anticipate stable demand in countries including Japan, the United States, and Brazil. In addition, we are working to strengthen used vehicle sales and after-sales services while incorporating digital technologies to enhance productivity. We have also engaged in the wholesale and retail used car business in Australia. We are also involved in an auto sales business that leverages fintech services to provide financing options to consumers who are unable to obtain traditional auto loans in order to expand sales reach.

■ Auto-Financing Business

Sojitz is developing the Autofinanciamiento business in Mexico. Autofinanciamiento, or self-financing, refers to a system in which potential buyers pool funds as a group, purchasing a vehicle monthly through a raffle system. All group members are able to purchase a vehicle at a determined step in the process, and each buyer pays off their remaining balance individually. This system provides an opportunity for potential buyers who are not able to receive a standard auto loan to purchase new vehicles.

■ Service Business

Sojitz is developing a parts quality assurance business, with a customer base that includes automobile and automobile parts manufacturers. Furthermore, in response to the changing times, we are working to build new business models including virtual reality (VR) and subscription services. We aim to utilize digital tools and take a data-driven approach to our commercial practices in the used car industry, and we are providing services and creating new venues for transaction that offer greater convenience to both buyers and sellers of used cars.