Sojitz’s Automotive Business in Central and South America:
Expanding the Automotive Distributor Business from the Hub of Panama with a Global Niche Top Strategy

Sojitz’s automotive operations encompass high-growth regions such as Asia and Latin America, as well as matured markets including Japan and the U.S. With over 50 years of experience in automotive sales across more than 50 countries, the company has established a strong global track record. Building on this expertise, Sojitz aims to become a global niche top company by leveraging the capabilities of its automotive Group companies worldwide and expanding market share through differentiated strengths in select markets. Furthermore, Sojitz is committed to strengthening its presence and establishing a market leading position across the entire value chain—from wholesale and retail to after-sales services—in alignment with its long-term growth strategy. This feature highlights Sojitz’s automotive distribution business in Panama, a key strategic hub for Central and South America.

Sojitz operates its automotive business across both high-growth markets, including Asia and Latin America, and matured markets such as Japan and the U.S. Over the past 50 years, the company has supported automotive manufacturers in expanding their overseas operations, developed import sales businesses in emerging markets, and established a strong track record of automotive sales in over 50 countries. In recent years, however, opportunities for expansion into new countries and regions have become increasingly limited. At the same time, the industry has entered a new phase characterized by the direct overseas expansion of automotive manufacturers into large-scale markets, alongside the growing presence of emerging automakers gaining market share through competitively priced electric vehicles.

In the automotive distribution business, three primary stakeholders collaborate to deliver vehicles to customers: Automotive Manufacturers are responsible for vehicle design, engineering, and production. Manufacturers define product specifications, ensure quality, and establish overall brand and product strategy. Distributors act as the intermediary between manufacturers and dealers. They manage vehicle importation and logistics, adapt products and pricing to local markets, oversee inventory and allocation, and support dealer networks through sales planning, marketing, and operational guidance. Dealers serve as a direct interface with customers. They handle vehicle sales, financing arrangements, and after-sales services such as maintenance and repairs, while building long-term customer relationships. Although each player has a distinct role, they operate as an integrated value chain (manufacturer → distributor → dealer) with a shared objective: to deliver high-quality vehicles and a superior customer experience while sustaining business growth and brand value. Effective coordination and alignment among these three parties are critical to success in the automotive industry.

Sojitz serves as both the distributor, who acts as an import agent, and the dealer who interfaces with customers to sell vehicles and provide aftersales services. Distributors function as a bridge between automotive manufacturers and dealers, and distributors are the ones who determine the branding and sales strategies for automotive sales in each country. Distributors deliver manufactured vehicles to specified countries and regions, while dealers lay the groundwork for seamless sales services. Distributors function similarly to a command center for the country and represent an indispensable presence for automotive sales overseas.

Relationship map for distributors, manufacturers, and dealers

Sojitz has many years of experience in the automotive sales business under this existing business framework. By leveraging this background and the functions and diverse talent of current Group companies, Sojitz aims to acquire market share in specific markets to demonstrate a strong market presence in its automotive distributor business.

Sojitz’s automotive business has a three-pronged growth strategy. First, Sojitz aims to establish its presence as a global niche top company. Under this strategy, Sojitz will leverage its accumulated industry expertise and the strengths of its Group companies to capture market share through its unique capabilities in specific markets and regions. Second, Sojitz has concentrated its capital and human resources in specific regions to achieve a market leading position via multi-brand development. Third, Sojitz is building a value chain that offers a broad range of functions that extend beyond sales to related downstream businesses such as after-sales services, insurance, and financing.

Sojitz has many years of experience in the automotive industry in Brazil, Argentina, and Puerto Rico, and other countries and regions across Central and South America, and the company is familiar with regional cultures and business customs. At the same time, Latin America is geographically far removed from auto manufacturers in Asia, who have faced a high hurdle when it comes to independent expansion in Central and South America. In the region, Panama is considered an economic and logistics hub with high growth potential. The automotive market is expected to expand based on both the country’s political stability and steadily growing population as well as rising middle class linked to economic development. In light of these factors, Sojitz made the decision to acquire full ownership of Silaba Motors S.A. and enter the car dealership business in Panama.

Sojitz’s automotive businesses in Central and South America (as of November 2025)

Established in 1991, Silaba Motors operates both distributor and dealer businesses across eight locations in Panama. The company’s distribution business handles sales strategies, inventory management, and logistics in Panama, while its dealer business undertakes sales activities and after-sales services targeted to customers. Silaba Motors’ strength lies in its integrated services, which cover everything from imports to vehicle sales and after-sales services through its network. Sojitz has handled brands through Silaba Motors including South Korea’s Kia and Japan’s Mazda. In June 2025, Sojitz acquired Petroautos, S.A., an authorized dealer of South Korea’s Hyundai vehicles, and subsequently increased its brand line-up. In terms of annual sales volume for 2024, Silaba Motors ranked No. 2 and Petroautos ranked No. 3 in Panama, and both companies have a large presence in Panama’s automotive market.

Silaba Motors’ locations in Panama City

Panama City accounts for approximately 90% of vehicle demand in the country, and one of Silaba Motors’ strengths is owning a bonded yard*¹ located near Panama City. Through ownership of this bonded yard, Silaba Motors has improved quality control of inventory and distribution efficiency, and the company stands out for its ability to meticulously and speedily deliver the car customers are seeking from a broad range of inventory.

*1: Bonded yard: An area where imported inventory is stored prior to the payment of import duties

Sojitz’s automotive business provides one-stop services that include everything from procurement and sales to after-sales services at customer touchpoints. By providing end-to-end services, Sojitz aims to strengthen long-term business sustainability and enhance customer satisfaction. In doing so, Sojitz will not only increase revenue, but also expand its presence in Panama to become a global niche top company. Local staff members will be indispensable to these efforts. Business growth hinges on the ability to recruit and develop talent who have a strong understanding of the local culture, business customs, and customer base.

The Central and South America region employs a diverse class of managers that include a high percentage of locally hired foreign managers, and this diversity distinguishes the automotive business in the region. There is a foundation established for talent from other countries like Puerto Rico to excel in management roles, and Sojitz has deployed talent to Panama from both its automotive business in Puerto Rico, where the company has over 15 years of experience, and from Venezuela, where Sojitz previously operated an auto manufacturing business for vehicle assembly. Sojitz aims to leverage top international talent to drive further business growth.

Moving forward, Sojitz seeks to strengthen its automotive distributor business in Central and South America working from its base in Panama. In addition to its distribution functions, Sojitz seeks to strategically allocate talent trained at Silaba Motors to other countries in the Central and South America region in order to provide the diverse functions required in the automotive sales business.

Sojitz will continue to expand its automotive business using the sales network it has cultivated in Central and South America. In Panama, Sojitz will grow its business operations while simultaneously exploring new business opportunities to expand its presence in the automotive industry.