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
  • 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.

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.

Highlights

Capital and Business Alliance with GO Inc. (Formerly Mobility Technologies)

Co-Creative Businesses

Tokyo Century formed a capital and business alliances with Mobility Technologies, a developer of taxi apps and related businesses, to advance new mobility services in anticipation of MaaS, automated driving, and smart cities.

Materiality

Contribution to decarbonized society
Contribution to social infrastructure development
Utilize diverse partnerships to create new value

  • 3 Good health and well-being
  • 7 Affordable and clean energy
  • 11 Sustainable cities and communities
  • 13 Climate action
  • 17 Partnerships for the goals

Co-Creative Businesses

In 2020, we formed a capital and business alliance with GO Inc. (formerly Mobility Technologies Co., Ltd.), which develops taxi apps and related businesses, to promote new mobility services with an eye toward MaaS, automated driving, smart cities, and other advances.

As a partner contributing to GO’s business operations and growth, we are responsible for the leasing and asset management of facilities and equipment. In addition, we are exploring other opportunities in the mobility field that leverage the strengths of the two companies.

In 2022, we launched an initiative to introduce DRIVE CHART, GO’s next-generation AI-powered drive recording service, to customers of Nippon Car Solutions Co., Ltd. This service automatically detects dangerous situations that are likely to lead to traffic accidents, by analyzing various data obtained from dedicated in-vehicle devices with drive recorders. The service, which combines AI and IoT, is expected to reduce traffic accidents.

Promotion of EVs in Nippon Car Solutions

EVs

Nippon Car Solutions, in its auto leasing business for corporate customers, has been promoting the introduction of EVs, mainly to the NTT Group.

Materiality

Contribution to decarbonized society
Utilize diverse partnerships to create new value

  • 7 Affordable and clean energy
  • 13 Climate action
  • 17 Partnerships for the goals

EVs

Nippon Car Solutions Co., Ltd. (NCS), in its auto leasing business for corporate customers, has been promoting the introduction of EVs, mainly to the NTT Group.

Even before EVs attracted attention for their low environmental impact, NCS actively proposed the use of EVs as an emergency power source during times of disaster. Even now, NCS still handles the highest number of vehicles in the industry.

The company leverages its buying power for manufacturers and its strengths in total solutions, such as communication-type drive recorders and safe driving consulting to support the NTT Group, which intends to convert 100% of its company vehicles to EVs by fiscal 2030 under its EV100 initiative*.

In addition, NCS works with NTT Group companies to propose EV packages to approximately 800 municipalities that have declared their commitment to carbon neutral. It cooperates with one of NTT’s close partners, a telecommunications construction company, to manage the installation and maintenance of charging facilities associated with the introduction of EVs. Furthermore, it will supply electricity derived from renewable energy sources in cooperation with NTT Group companies to help local governments achieve carbon neutrality.

*An international business initiative organized by The Climate Group, a British non-profit organization that promotes the use of electric vehicles and environmental improvements.

Promoting Digital Transformation at Nippon Rent-A-Car

Digital Transformation

Nippon Rent-A-Car Service is advancing its digital transformation for improved customer convenience and streamlined business operations, such as releasing a smartphone app for individual members and revamping its reservation website.

Materiality

Creation of new businesses driven by technical innovation

  • 8 Decent work and economic growth
  • 9 Industry, innovation and infrastructure

Digital Transformation

Nippon Rent-A-Car Service, Inc. has been improving customer convenience and achieving operational efficiency through DX initiatives, including the release of a smartphone app for individual members and the revamping of its reservation website.

The app enables customers to complete making and changing reservations and also the confirmation of insurance coverage and other important information about rental care use in advance, which was previously handled at the store on the day of use. This allows for faster handover of rental cars and also better quality service from store staff.

In some locations, the company now provides even greater convenience through its “self-rental car” service, so customers can use the smartphone app to rent and return* a car without any direct interaction with staff.

*Using a smartphone app for departure procedures unlocks the vehicle so the renter can leave without having to go inside the store. Vehicles can also be returned via the app.

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