Sojitz Corporation

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Automotive Division

With automotive assembly and wholesale and retail sales as its core businesses, the Automotive Division develops its operations in growing markets, such as Asia, Russia, NIS countries, and Latin America, 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.

Strengths of the Division

External Environment

Opportunities

  • Increase in demand for automobiles due to economic development in emerging countries and diversification of needs in developed countries
  • Paradigm shift in the automotive industry and changes to the existing industry structure
  • Rising need for quality control due to globalization and supply chain diversification

Risks

  • Financial and economic stagnation and event risks such as natural disasters
  • Political and regulatory changes in various countries and changes to the social environment caused by technological advancements
  • Changes in international strategies of car makers

Growth Strategy

We will strengthen our functions in our core business of automobile sales, build business foundations in new fields, and ultimately contribute to a prosperous mobility society.

Tatsuhiko Kanetake

Executive Officer, COO
Automotive Division

The automotive industry is currently in the midst of a paradigm shift, such as focusing on CASE (Connected, Autonomous, Shared, and Electric) technologies as well as MaaS (Mobility as a Service) platforms. Further, the COVID-19 pandemic is transforming people’s lifestyles, which reminds us of the progress toward a next-generation mobility society.

The Automotive Division is in the process of growing earnings from businesses invested in under Medium-Term Management Plan 2017 and Medium-Term Management Plan 2020. In addition, the division is expanding the scope of its operations in promising markets in its core automobile sales business (distributorships and dealerships). Specific measures in this division include efforts to increase business value through enhancement of local-based sales marketing capabilities and after-sales services and the strengthening of functions through utilization of Internet of Things, artificial intelligence, and other advanced digital technologies. We are also reinforcing our financing business while aggressively developing new service businesses that adapt to the changing times.

Recovery in automobile production and sales volumes has been sluggish as a result of the COVID-19 pandemic as well as the global semiconductor shortage, and the impacts of this slow recovery are also expected to be felt to some extent, in the year ending March 31, 2022. Conversely, we expect ongoing growth in automobile demand centered on Asian, Latin American, and other emerging countries. A focus in the Automotive Division will thus be augmenting Sojitz’s functions and regional operating foundations to ensure we are able to capitalize on this demand growth.

Businesses

Business Map

Hyundai Nishat Motor (Private) Limited (Pakistan)

Import Motors, Inc. (U.S.)

■Distributor Business

Sojitz has a long track record in the assembly and sales of automobiles, and we are credited with our management functions from various partners. We are bolstering our portfolio of South Korean- and Chinese-brand vehicles, having begun assembly and sales of Hyundai automobiles in the 200-millionstrong Pakistan market and sales of Geely automobiles in the Philippines.

■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 and to build a next-generation sales platform that utilizes the internet and digital technologies. We are also promoting automobile sales to customers who are unable to receive a standard auto loan through financing operations that utilize fintech services.

■Auto-Financing Business

Sojitz has entered 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 has entered the parts quality assurance business, with a customer base that includes automobile and automobile parts manufacturers. We are also working toward the automation of quality assurance through the use of cutting-edge technology. Furthermore, in response to the changing times, we are working to build new service businesses for consumers and business operators, that make use of the internet and digital technologies.

Organization

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