Sojitz Corporation

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Automotive Division

Conducts automotive assembly and wholesale, and retail sales. We have operations in growing markets such as Asia, Russia & NIS, and Latin America as well as in mature markets such as Japan and the U.S.. In addition, we are actively focusing our efforts on business areas such as auto-financing, automotive parts and components, automotive-related services, and internet and digital technologies.

Strengths of 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 risk 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 the functions in automobile sales as core business, build business bases in new fields, and ultimately contribute to a prosperous mobility society.

Tatsuhiko Kanetake

COO,
Automotive Division

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 digital technologies such as IoT & AI. 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.

Temporary stagnation is forecasted in the automobile sale business due to the effects of the spread of COVID-19, but by levering the functions the company has cultivated and further strengthening locally-based business foundations, we intend to pursue more initiatives aimed at steadily ensuring that demand recovers once the situation returns to normal.

Businesses

Stratosphere Quality LLC (U.S.)

Import Motors, Inc. (U.S.)

■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 premium 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.

Organization

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