Business Models Supporting Value Creation

External Environment

Businesses

■Automobile Sales Business

We maintain automobile and truck wholesale operations in countries including Philippines, Thailand, Pakistan, Puerto Rico, Russia, and Ukraine. We also manage our dealership operations in countries including Japan, the U.S., Brazil, and Russia. Through pre-owned vehicle sales and after-sales services in our dealership operations, we are building an earnings foundation not easily affected by the economic climate.
・ Distributor (wholesale) business　　・Dealership business

■Auto-Financing Business, Parts-Related Business, Service Business

We maintain our auto-financing businesses to boost automobile purchases in emerging countries. We also have operations for sales and comprehensive logistics services for automobile and motorbike parts in Asia and Europe, and quality assurance services for automobile parts in North America, providing high-value-added services including supply chain management functions. We actively focus on new business areas, including connected car technology, sharing services, and online retail that incorporates advanced technology such as AI and IoT.
・ Auto loan business　　・Parts sale/comprehensive logistics service business　　・Parts quality assurance service
・Sales and service business utilizing advanced technology

Growth Strategy

We anticipate rising demand for automobiles, particularly in regions with emerging countries such as Asia and Latin America, given the increasingly active movement of people and goods which has accompanied the economic development of those countries. Waves of great change are also sweeping through the industry, with the introduction of connected services, sharing services, and technological innovations such as electric vehicles and autonomous vehicles. Amidst these changes, we have accumulated a wealth of knowledge in automobile sales, positioning it as one of our core businesses. While expanding our business through M&A of good standing assets in promising markets, we aim to further add the value to our businesses through improvement of locally-based sales and marketing capabilities and after-sales services, and strengthening of functions through incorporation of advanced technologies. We are also actively working to strengthen our financing business and establish new service businesses which utilize advanced technology.

In addition, in pursuit of sustained growth, we are putting efforts to develop a new generation of experienced personnel who have corporate management skills through on-site management of locally-based Group companies, and personnel who have the capability to create new businesses and functions to cope with changes in the external environment.

Initiatives

■Distributor Business

Sojitz has a long track record with the assembly and sales of automobiles, and we are credited with our management functions from various partners. We have begun assembly and sales of Hyundai automobiles to the 200-million-strong Pakistan market, and have also begun the sales of Geely automobiles in the Philippines.

■Dealership Business

We are expanding our authorized dealership business for luxury brand vehicles, where we anticipate stable demand in countries including Japan, the U.S., and Brazil. We are also developing automobile sales to customers who are unable to receive a standard auto loan, through financing operations which utilize FinTech services.

■Auto-Financing Business

Sojitz has entered the Autofinancimiento business in Mexico. Autofinancimiento, 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 the opportunity to purchase new vehicles to potential buyers who are not able to receive a standard auto loan.

■Parts Business

Sojitz has entered the parts quality assurance business in North America, with a customer base including automobile and automobile parts manufacturers. We are also working towards the automation of quality assurance through the use of cutting-edge technology. In Asia, we provide a high-value-added comprehensive logistics service that integrates functions such as inspection, inventory management, light assembly, just-in-time delivery, and financing into automobile and motorbike parts supply chain management operations.