■Nissan Tokyo Sales Holdings＜8291＞ Business Overview

2. The company's strengths

In the “CASE” and “MaaS” era, the company has an advantage as a frontrunner in the comprehensive mobility business. Such advantages are supported by strengths such as (1) pioneers in EV sales, (2) stock business with a customer base of 0.35 million, (3) best practices, and (4) store networks rooted in the region.

(1) Pioneer in EV sales

The company has know-how accumulated over many years regarding EV sales and service, and is leading the industry as a pioneer in EV sales. On the sales side, it has a cumulative sales record of over 14,000 EVs over 14 years, and boasts a full lineup of products such as the first mass-produced EV “LEAF,” the SUV “Aria,” and the light vehicle EV “Sakura,” and they are also conducting EV consultations, such as selling household chargers and providing V2H* that can use electricity stored in EVs at home. In the maintenance system, in addition to a safe maintenance system with approximately 700 Nissan EV certified mechanics, NT Auto Service has 3 heavy EV maintenance plants. About 100 quick chargers, which are important as infrastructure for EVs, have also been deployed in Tokyo so that anyone can use them 365 days a year, and there is a track record of about 0.2 million charging times per year. Also, many stores are equipped with portable power feeders “power movers” in the event of a disaster.

* V2H: An abbreviation for “Vehicle to Home,” a function that allows electricity stored in a car battery to be used at home.

(2) Stock business with a customer base of 0.35 million

In addition to selling new and used cars, the company is developing a stock business with a customer base of 0.35 million cases through individual leases of 14,000 units or more, maintenance back members of 0.121 million people leading to maintenance income, financial products with a usage rate of about 50%, and insurance coverage of approximately 0.13 million cases. Stable stock earnings from such transactions with existing customers cover approximately 90% of operating expenses, leading to the strength of the company's profit structure.

(3) Best practices

The company's strength is also its best practice of quickly sharing know-how and information through role-playing, video, etc., and developing it horizontally. Three years have passed since the three former Nissan sales companies were integrated, and now everyone can do proposed sales based on best practices regardless of where they are from. As a result, the company's sales promotion, sales hit rate, and product proposal ability to meet customer needs have improved, and the unit sales price per unit has increased. EVs have also led to an increase in sales by horizontally developing best practices to resolve anxiety about mileage, charging, subsidy systems, and charging equipment construction. As a result, even though it is based in the high-cost area of Tokyo, it has achieved a relatively high level of operating profit margin for an automobile dealer.

(4) A network of stores rooted in the community

The company's base covers the entire Tokyo area, excluding the 8 central wards of Tokyo*, and covers approximately 90% of Tokyo's population of 14 million people. The company dominates Tokyo and has 105 new car sales stores (including 4 Renault stores), 18 used car sales stores, 12 “car inspection centers”, and 8 NT Auto centers. By developing a mobility business centered around such a network of stores, consumers in Tokyo with strong purchasing power are locked in.

* The 8 central wards of Tokyo are Chiyoda Ward, Chuo Ward, Minato Ward, Shinjuku Ward, Bunkyo Ward, Taito Ward, Shibuya Ward, and Toshima Ward, which are so-called urban centers, and are areas developed by consolidated subsidiaries of Nissan Motor Co., Ltd., which mainly focus on corporate demand.

(Written by FISCO Visiting Analyst Miyata Hitomitsu)