Sumitomo Mitsui Auto Service × Electrification of mobility & Decarbonization

With vehicle leasing as its mainstay business, Sumitomo Mitsui Auto Service (SMAS) aims to help realize a sustainable society based on its corporate philosophy: “Contribute to the progress of the automotive society and the improvement of the global environment by exceeding customer expectations in inspiring ways.” SMAS is a leader in vehicle leasing, owning and managing around one million vehicles Group-wide and serving 50,000 corporate customers. SMAS’s value proposition goes beyond leasing to encompass provision of comprehensive high-quality vehicle management services—covering everything from environmental measures, safety and reliability to cost reduction— that help customers and society resolve the issues they face.

To help achieve the 2050 carbon neutrality targets promoted by the Japanese government, SMAS established the EV & Carbon-Free Promotion Department (present-day EV & Carbon-Neutral Promotion Dept.) in October 2021, an organization dedicated to supporting EV introduction and decarbonization of companies and the public sector.

The automotive industry is undergoing a once-in-a-century transformation. EVs are attracting attention as the future of mobility because they do not emit CO₂ during their use, thus contributing to carbon neutrality, and their batteries can be used as power sources in the event of a disaster. Yet there is much work to be done since, compared with gasoline-fueled internal-combustion-engine vehicles, initial costs of EVs are still relatively high, their charging facilities remain sparse, and so range anxiety persists when venturing beyond the security of home-based charging.

Despite a growing trend among environmentally conscious foreign companies in Japan to switch their company fleets to EVs as one element in their drive to become carbon neutral, many companies and municipalities in Japan still feel the hurdle to EV introduction is dauntingly high.

To lower the hurdle, the EV ＆ Carbon-Neutral Promotion Dept. is establishing one-stop EV service providers offering companies and municipalities comprehensive support covering proposals for EV introduction plans, selection of EV models according to purpose of use, charging infrastructure and charging service arrangements, after-sales service, as well as renewable energy facilities and energy management. Through partnerships with automakers, EV-related companies, energy management and mobility startups, and bodies with a regional footprint such as local government and regional financial institutions, SMAS proposes tailor-made solutions.

The company is also pursuing R&D to maximize the value of EVs, which represent the future of mobility, including through development of new services exploiting EV characteristics as power sources and the study of a circular economy model, such as reuse of EVs whose lease periods have expired and recycling of the storage batteries installed in the EVs.

Mobility Passport is a one-stop app for SMAS customers that are seeking to reduce vehicle-related costs and centrally manage transportation arrangements. With this app, users can reserve company cars and arrange alternative vehicles, such as rental cars and car sharing, from their smartphones. The app also offers management functions necessary for business mobility, such as recording alcohol check results, logging daily driving reports, and managing driving licenses, all in one application.

ALnote, a free app specifically for Mobility Passport’s alcohol check function, was introduced recently. By recording the results of drivers’ alcohol checks and centrally managing the accumulated data, the app helps streamline the administrative duties of driving safety supervisors, thus responding to the mandatory requirements of the revised Road Traffic Act that came into force in April 2022.

SMAS proposes the optimal number of vehicles to be owned based on analysis to maximize fleet utilization by the combination of company vehicles and rental vehicles. A reduced fleet contributes to lower CO₂ emissions as well as lower cost of ownership of vehicles. The company also encourages its customers to use the cost savings to introduce more EVs.

As decarbonization gains momentum in Japan and around the world, awareness in society is changing dramatically, giving the introduction of EVs a tailwind. Government is also endeavoring to boost EV demand while enhancing affordability by providing subsidies for EVs and other vehicles with excellent environmental performance, including those usable as emergency power sources in the event of a disaster, while at the same time promoting the development of charging infrastructure and other necessary facilities throughout Japan.

SMAS is evolving into a “mobility platformer,” a reliable partner that helps resolve environmental and societal issues by establishing next-generation mobility services centering on EVs.