Automobility
Expanding Our Growth Base through Unrivaled Service Quality and Collaboration with Diverse Business Partners
while Creating Next-Generation Mobility with a Focus on EVs and New Businesses
We provide a wide range of auto services with the industry’s top-class fleet under management.
Automobility
Taking on the challenge of this once-in-a-century era of change
- Segment Assets
- ¥ 611.6 billion
- Distribution of Segment Assets
- 11 %
- Ordinary Income
- ¥ 28.0 billion
*As of March 31, 2023
Strengths
The strength of the Automobility segment is providing a rich product lineup and high-quality services such as connected car-related services and business process outsourcing, including comprehensive fleet management.
We are expanding our growth base through collaboration with business partners and promoting the creation of next-generation mobility and new businesses.
Opportunities
- Growth in businesses related to electrified vehicles due to pursuit of carbon neutrality
- Utilization of digital transformation to improve customer convenience
- Creation of new businesses utilizing CASE (connected, autonomous, shared & service, and electric), mobility as a service (MaaS), digital transformation, and other automobile data-related technologies
- Shift from ownership to use of automobiles
Risks
- Intensifying, cross-industry competition due to increasing entry into mobility field by competitors
- Delays in deliveries of new automobiles as a result of shortages of semiconductors and other parts
- Reduced mobility demand amid pandemics
- Increases in resource and material prices in conjunction with rising geopolitical risks
- Senior Managing Executive Officer,
- President, Automobility Business Development Unit
Masato Osugi
Advancement of Growth Strategies for Expanding Our Businesses and Strengthen Our Operating Foundation
The operating environment surrounding the Automobility segment is currently experiencing substantial volatility as the trend toward electrified vehicles is propelled by decarbonization efforts and as technological innovations, such as connected vehicles, have advanced, as businesses based on new ideas arise from market entry by players from other industries, and as changes in the way vehicles are used are seen amid the COVID-19 pandemic.
In this environment, we are leveraging the strength of our complete, industry-leading lineup of mobility services (corporate and individual auto leasing, car rental, and other services) to advance growth strategies for expanding our businesses and strengthening our operating foundation.
Strengthening of EV Value Chain
In fiscal 2022, we continued our efforts to strengthen the EV Value Chain from the previous fiscal year. We concluded a capital and business alliance with MIRAI-LABO Co., Ltd., which possesses EV battery diagnosis and evaluation and reuse technologies, in fiscal 2021, and began working with the company to build EV residual value models and battery reuse models.
Major Offerings
Corporate Auto Leasing
Group company Nippon Car Solutions Co., Ltd. provides auto leasing services to corporate customers.
Related Services
Rental Cars
Nippon Rent-A-Car Service, Inc., a Group company, responds to customer needs for vehicles with a rich lineup of services.
Individual Auto Leasing
Orico Auto Leasing Co., Ltd., a Group company, provides auto leasing services to customers (mainly individuals) through its Koala Club and other agents nationwide.
Next-Generation Mobility/GX Business
We are promoting collaboration with partner companies, especially in EV-related businesses, to achieve carbon neutrality.
Key Figures
Number of Vehicles Managed
Approx. 700,000*
Number of Nippon Car Solutions Affiliated Maintenance Shops
Approx. 16,000
Number of Nippon Rent-A-Car Offices
Approx. 550
- *Total of Nippon Car Solutions, Nippon Rent-A-Car Service, and Orico Auto Leasing
Generation of Synergies through Alliance with MIRAI-LABO
In fiscal 2021, Tokyo Century concluded a capital and business alliance with MIRAI-LABO Co., Ltd., which develops businesses in the field of EV battery diagnosis, evaluation, and reuse, in order to further accelerate the Group’s EV leasing and rental business.
MIRAI-LABO boasts proprietary technology that evaluates EV battery deterioration on a module-by-module basis. It is also working to increase the value of batteries that can no longer be used in EVs by repurposing them into stationary storage batteries and autonomous street lights, depending on the level of deterioration. We intend to improve the competitiveness of our EV leases by developing with MIRAI-LABO an effective use model of batteries based on diagnostic evaluations. We will also work with MIRAI-LABO, a GX platform advocate, and its partners to bolster and supply environmentally sound mobility services related to the reuse, repurpose, and recycling of EV batteries.
