The purpose of this paper is to focus on the Japanese corporate car sales environment and analyze the business relationships within.
Many consumer durable goods such as automobiles, electrical appliances, furniture, household appliances, etc., have been developed, produced, and sold through various strategies to individuals. However, these consumer durable goods are also commonly purchased by businesses.
Among consumer durable goods, particularly so in the case of the automobile market, personal preference plays a large role and so the majority of sales strategies have been focused on targeting individuals. Nevertheless, 14.5% of the approximately 5.2 million domestic automobile sales in 2019 were leasing contracts, the majority of which for corporate use. There are no small number of corporate transactions for automobiles. Additionally, the era of“ owning” vehicles has changed to the era of“ using” them, leading to a rapid increase of rental car and car sharing businesses, as well as to the number of vehicles registered as such.
While traditional car manufactures are struggling with community-based personal sales, corporate leasing and the use of car-sharing is increasing. Within this paper, I will analyze the complex inter-company relationships and various sales forms found in the corporate automobile market. In addition, after clarifying the current automobile-centered transaction composition data from the Toyota Motor Corporation, I will share my thoughts on the outlook for car distribution moving forward.
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