Auto

Our Approach to Our Sustainability Themes

We will continue to provide services that help reduce both environmental impact and traffic accidents. We will also promote and accelerate decarbonization in our own facilities and businesses.

• We will create an environment that facilitates the transition to electric vehicles (EVs) for customers, which will support expansion in vehicles under management.
• We will monitor the migration rate to next-generation hybrid vehicles, electric vehicles, and fuel cell vehicles in the leasing, rental car, and car sharing businesses, with the goal of increasing this rate by proactively proposing relevant vehicles.
• We will gradually transition ORIX-owned vehicles to EVs and increase the ratio of next-generation vehicles to directly managed rental cars and car-sharing vehicles.
• We will develop vehicle management reports using vehicle operation data and provide them as information services relevant to environment responsibility and safe driving.
• Initiatives to reduce CO₂ emissions will include using more green electricity at rental car outlets.

Business Activities and Sustainability Themes Matrix

Used vehicle leasing and sales, vehicle purchasing and sales agency

• #Promoting a circular economy

ORIX Auto provides comprehensive automobile services including automobile leasing, automobile rental, car sharing, and vehicle management services. It had 1.43 million vehicles under management as of March 31, 2023, among the largest in Japan. We also leverage our vehicle expertise in businesses that make use of used vehicles. We operate our own auctions to distribute used vehicles and recycle used vehicles for parts.
In addition to used vehicles that we had offered through our leasing and rental car businesses, we distribute vehicles purchased from corporate and individual customers, and used vehicles from our sales agency service for corporate customers. Used vehicles from our leasing and rental businesses are of particularly good quality because we regularly maintain and inspect them.
We rigorously and comprehensively inspect used vehicles. We only offer those that meet our standards for sale or lease at retail outlets. We hold auctions at our own sites nationwide for the remaining used vehicles to sell them to other companies. We disassemble vehicles that we cannot resell and recycle them for parts.

Inspection and standards

Used car sales: We sell ORIX Certified Used Cars that meet ORIX Auto's own criteria. Our inspections are carried out on all vehicles by AIS Inc. whose quality assessment is quite reliable. We issue certificates with evaluation scores for each vehicle. Based on the standards established by the Nippon Auto Auction Association (NAK), we select and sell only those with no repair histories.
Secondhand car lease: Rigorous vehicle inspections are carried out by third party institutions to check ORIX's criteria such as year of manufacture, mileage, repair history and exterior and interior condition, to ensure we select and provide only vehicles that meet our standards.

Land transport

Transportation of used vehicles is entrusted to multiple land transportation companies. We regularly hold meetings about transport safety with each company.

Recycling

For vehicles without resale value, we recycle them as parts and raw material through our partners around the country.

Purchase / sales agency service (entry to auctions)

We provide the following services so that customers can sell with confidence after eliminating compliance risk.
Purchase: removing the company's signboard from car bodies, submitting various certificates etc.
Selling service for outsourcing: arranging transportation of vehicles, removing the company's signboard from car bodies, paperwork, etc.

Auction

In addition to 4 bidding venues and 5 satellite venues, we use external bidding venues. We utilize our own bidding venues and external auction sites distributed across the country to reduce the transportation distance of vehicles and thereby reduce CO₂ emission.
Only corporate members who have been evaluated by ORIX Auto can participate in bidding at the venue. Members are exporters, domestic retailers, and wholesale distributors. Members can both bid and sell.

Automobile maintenance services

• #Promoting a circular economy
• #Climate change / Reducing GHG emissions
• #Safe & secure mobility solutions

ORIX Auto offers maintenance lease service packages covering most of the administrative work related to vehicles, such as vehicle procurement, periodic check-ups, mandatory vehicle inspections, payment of various taxes, and accident assistance.
ORIX Auto helps to reduce the environmental impact of customer vehicles by improving fuel economy and reducing exhaust gas during the inspection process, such as by changing or replenishing the oil, checking tire pressure, and replacing worn or deteriorated parts. ORIX Auto also conserves resources by promoting the use of recycled parts when replacing parts during repairs.
ORIX Auto established ORIX Maintenance Club in 1984 and the major garages to which maintenance is outsourced to have joined. As of March 31, 2023, maintenance was outsourced to 8,974 garages. Other supporting members of the ORIX Maintenance Club include tire and battery manufacturers, property and casualty insurance companies, and oil and parts manufacturers. The club holds a national convention once a year and regional conventions twice a year to share information, and also holds workshops to improve the level of maintenance technology and service. ORIX Auto periodically conducts surveys on the operations of maintenance contractors to confirm that they are providing maintenance necessary for safe driving without providing excessive maintenance.
ORIX Auto supplies garages with rebuilt components for some parts used for vehicle maintenance and repair. Rebuilt components are produced by disassembling and cleaning used components and refurbishing worn and deteriorated parts for reuse, and help reduce CO₂ emissions generated in the process of manufacturing new parts. ORIX Auto maintains rigorous inspection standards for finished products so that they are equivalent to new products in performance. ORIX Auto has relationships with numerous suppliers of rebuilt parts to ensure the availability of high-quality parts when needed. Supplies are subjected to annual quality checks, and ORIX Auto does business only with highly reliable suppliers.
Finally, each garage recycles waste parts from vehicle maintenance and repair through recycling contractors.

Supporting EV/FCV adoption in auto leasing business

• #Climate change / Reducing GHG emissions

In recent years, dramatic advances in automobile technology have put the spotlight on electric vehicles (EVs) and fuel cell vehicles (FCVs) as they do not emit CO₂ while in operation; however, EVs and FCVs represent less than 1% of the approximate 82 million vehicles owned in Japan. Key reasons for this include lingering concerns about vehicle price, cruising range, and charging/filling infrastructure. A core mission for ORIX Auto is creating an environment that steadily resolves customer concerns surrounding buying EVs and FCVs so people can purchase clean vehicles with confidence, and we will promote and strengthen our support of customers' environmental efforts.

Introduction of electric, hybrid, and fuel cell vehicles in our car rental and car sharing businesses

• #Climate change / Reducing GHG emissions

ORIX Auto promotes the introduction and provision of vehicles that offer superior environmental performance through the operation of car rental and car sharing businesses. Of the approximately 70,000 vehicles under its management, roughly 13,000 are electric, hybrid, or fuel cell vehicles (as of March 31, 2023).
Our car sharing business is transitioning to zero emission vehicles (ZEVs) as recommended by the Tokyo Metropolitan Government, which aims to increase the proportion of ZEVs to 50% of new passenger vehicles sold by 2030. Together with the Tokyo Metropolitan Government, this business endeavors to create opportunities where residents can utilize ZEVs at a reasonable price.

Car rental business / Car sharing business

• #Climate change / Reducing GHG emissions
• #Regional vitalization

ORIX Auto promotes the development of a sharing economy through the operation of car rental and car sharing businesses at approximately 2,500 locations nationwide.
The Japanese car sharing business started in 2002 when ORIX Auto and seven private companies took over the electric vehicle sharing experiment of the Association of Electronic Technology for Automobile Traffic and Driving. Since 2007, ORIX Auto began business operating this business independently.
ORIX Auto has led the promotion of the sharing economy by developing various novel, first-in-the-industry measures and developing markets and improving convenience for customers. Initially, ORIX Auto promoted understanding of the term “car sharing” and that customer recognition these cars can be borrowed “easily” and “for a short time”. This message was then supplemented with explanation of the advantages of sharing based on changing societal demands; for example, responding to increased environmental awareness by explaining how CO₂ reduction can be achieved by combined use of car sharing and public transportation and meeting consumer needs to reduce car ownership costs by explaining that car sharing allows for use only when necessary. ORIX Auto has worked to expand the car sharing market through such explanation and promotion of the advantages of car sharing.
Additionally, in a joint initiative with Aizuwakamatsu City Hall in Fukushima Prefecture, city hall employees can car share with citizens unaffiliated with city hall. City hall employees are granted exclusive access to the designated cars on weekdays while others are granted access on weekends and public holidays. ORIX Auto is using its resources effectively by enhancing convenience and optimizing mixed mode commuting.

Data

(as of end-March 2023)
Car Sharing
Members: Approximately 390,000
Locations: Approximately 1,600, primarily in urban areas
Vehicles: Approximately 2,500

Rental car
Locations: Approximately 900
Vehicles: 70,000

Related Link

• ORIX Auto Corporation (Car Sharing)(in Japanese)

Truck rental business (disaster recovery assistance)

• #Disaster recovery

ORIX Auto has developed a truck rental business with a wide range of work vehicles for construction and civil engineering operators, with stable and punctual support services such as insurance coverage at the industry's highest standards and 24/7 accident support.
Since the Great East Japan Earthquake of March 2011, we have expanded vehicles and opened new stores in the Northeastern (Tohoku) area for the purpose of assisting timely restoration and reconstruction of the area. We rent mid-sized dump trucks, cranes and light vans which are expected to be in demand for construction work such as those on the Joban Expressway, projects to relocate buildings to higher grounds, Joban Train Line relocation projects, and maintenance of coastline areas. We also operate aluminum vans and refrigerator trucks, demand for which is expected to rise due to increases in housing construction.
Since the Kumamoto earthquake in April 2016, ORIX Auto increased the number of its vehicles in the Kyushu area from approximately 1,400 units to approximately 1,800 units. Since the western Japan floods of July 2018, ORIX Auto opened three new sales offices in the Chugoku region and increased the number of vehicles handled from approximately 300 to approximately 960. These service expansions have been to support restoration and reconstruction activities in the areas affected by disasters throughout Japan.

Data

Number of bases for truck rental services: 53 (as of the end of March 2023)

Related Link

• ORIX Auto Corporation (Truck Rental)(in Japanese)

Telematics service

• #Climate change / Reducing GHG emissions
• #Safe & secure mobility solutions
• #Improving labor productivity

In ORIX Auto's “e-Telematics” service, an onboard device with communication and GPS functions is installed in customer vehicles to visualize their operating status. The onboard device collects information in real time on driver behavior, including driving speed and rapid acceleration or deceleration. The service then analyzes this driving data to reduce the environmental load from vehicle use.
Specifically, an email is sent to a designated recipient upon the occurrence of unsafe driving behavior, such as excessive speed or rapid acceleration or deceleration. Drivers will therefore want to drive more carefully to avoid receiving such emails, leading to safe, environmentally sound driving that reduces fuel costs, improves fuel economy and reduces CO₂ emissions.
By analyzing this data, we identify compliance, safety and environmental issues in the operation and management of a company's fleet of vehicles and provide support through consulting services on appropriate labor management of drivers, accident prevention, methods to reduce the environmental impact of driving, and other matters.
For corporations, we offer e-Telematics for sales vehicles, an e-Telematics service with connected drive recorder functionality, and e-Telematics PRO with a digital tachograph^*1 certification for transportation vehicles. certification for transportation vehicles. In August 2018, we began sales of Nauto, an AI-equipped dashcam developed by Nauto Inc. of the United States, an AI technology company in the automotive field. The product caters to the needs of corporations that want to prevent accidents caused by distracted driving, dozing driving, and road rage.
In February 2020, we conducted demonstration experiments with the Transportation Bureau of Kitakyushu City, Fukuoka Prefecture, to establish an elderly driver watching system using AI. The aging of drivers in Kitakyushu Municipal Bus is becoming an important issue in terms of operation safety and business continuity. In this demonstration experiment, we introduced e-Telematics and Nauto into the vehicles of Kitakyushu Municipal Bus, and built a "Safe Driving Support System" based on the data obtained from them. This experiment showed that collection and analysis of driving data utilizing AI and advanced technology contributed to safer driving. As a result, Kitakyushu Municipal Bus system decided to fully introduce Nauto since November 2021, and is utilizing it as part of the “Safe Driving Support System.”

1. Digital travel recorder

Data

Number of vehicles with Telematics Service: 127,000 (as of the end of March 2023)

Related Link

• ORIX Auto Corporation (Telematics Service)(in Japanese)

Development and sale of special-purpose vehicles

• #Improving labor productivity
• #Disaster recovery
• #Safe & secure mobility solutions
• #Regional vitalization
• #Aging society

ORIX Auto uses the expertise it has cultivated in truck and specialty vehicle leasing to plan and develop mobile bank branch vehicles and mobile office vehicles that are equipped according to customer requirements.
Mobile bank branch vehicles enable financial institutions to provide financial services without opening a branch. We began developing these vehicles in response to a request from a regional bank whose branches had been damaged in the Great East Japan Earthquake.
In addition to financial institutions that adopt these vehicles for use in disaster preparedness as part of their business continuity plan, an increasing number of institutions use the vehicles as way to support members in regions where they have consolidated branches to raise operating efficiency.
We developed the mobile office vehicle to meet customer requirements for reduced working hours and other ways to increase operating efficiency. Our mobile office vehicles are modified commercial-use vans equipped with a desk, a chair with storage capabilities, an inverter, an air conditioner and an LED lamp. For vehicles equipped with a solar panel, it is possible to charge the on-board battery (which runs the vehicle but is configured so that it can also be used to power a lamp, air conditioner, computer, etc.) from sunlight in addition to charging while the vehicle is running or from an external power supply. Mobile office vehicles serve as simple offices and enable office work as time permits. They can improve labor efficiency, lessen employee fatigue, and reduce office rental costs at construction sites and other locations where temporary offices are difficult to install. They can also store power and therefore can be used in areas affected by disasters.

Data

(As of March 31, 2023)
Mobile bank branch vehicle sales: 188 unites
Mobile office vehicle rental units in inventory: 247 units nationwide

Head office building achieves 100% renewable energy / Using clean energy at car rental locations

• #Climate change / Reducing GHG emissions

ORIX Auto now sources the energy used at its headquarters building entirely from renewable energy; as a result, it effectively uses 100% renewable energy. Renewable energy generated at ORIX Group-operated woody biomass exclusive combustion power plant is converted into non-fossil fuel energy certificates with tracking information. ORIX Corporation has a significant retail electricity supply business through which it is able to provide ORIX Auto with electricity using these energy certificates. In the fiscal year ended March 2023, this initiative resulted in annual CO₂ emissions reductions of 422.9 tons for ORIX Auto.

The car rental business will work to ensure clean energy is used at its retail locations from the fiscal year ended March 2022, starting from directly-operated stores and then moving to franchises.

Next generation mobility service demonstration experiment

• #Regional vitalization
• #Promoting innovation & technological change
• #Promoting a circular economy

ORIX Auto has commenced a demonstration experiment for one-way car sharing service in Aizuwakamatsu City, Fukushima Prefecture. One-way car sharing is a service which allows cars to be returned at stations different from where they were picked up and is more convenient for users than the conventional round-trip method.
Through demonstration testing, ORIX Auto will accumulate data about the level of user needs and test the business viability and operation system of one-way car sharing. Aizuwakamatsu City seeks to become a smart city and is undertaking urban development using ICT-related businesses, environmental technologies, and other technologies in collaboration with the national government, companies, and other organizations. Going forward, ORIX Auto aims to address the issues regarding mobility faced by regional cities by further evolving car sharing services with digital technologies and coordinating smart cities and urban data.
ORIX Auto is considering the following as the future framework of the demonstration experiment:

• Distributing vehicles capable of one-way car sharing throughout the city based on an analysis of prospective demand, achieved utilizing city data and in collaboration with ICT-related companies
• Enhance the convenience of mobility, allowing residents and tourists to more flexibly move about the world by having one-way car sharing vehicles available when desired

NIKKO MaaS - Japan's first environmentally friendly mobility as a service (MaaS) for tourists launched in Nikko

• #Climate change / Reducing GHG emissions
• #Regional vitalization

ORIX Auto participates in the NIKKO MaaS Consortium, Japan's first environmentally friendly mobility as a service for tourists. The Ministry of the Environment has selected Nikko MaaS as a “Supported Project: Automotive CASE Regional Decarbonization Transport Model.” The government scheme is aimed at establishing pioneering models for net-zero emissions, with the goal of realizing carbon neutrality and a decarbonized society by 2050. It supports cutting-edge private initiatives capable of leading Japan into a new era by enabling new automotive CASE regional decarbonization transport models, through the incorporation of fresh business models, technologies, and innovations.
By promoting a switch from private cars to rail transport when visiting Nikko to reduce traffic congestion, Nikko MaaS aims to cut greenhouse gas emission volumes through increased usage of rail transport. The consortium aims for Nikko MaaS to become a model for decarbonization initiatives at other tourist destinations through the adoption of pre-sale EVs and promoting the use of RE 100-certified charging stations. It will seek to strengthen awareness of the Nikko region as an environmentally-friendly tourist destination, while revitalizing the region through promotion of tourism in surrounding areas.