Mitsubishi Auto Leasing Corporation launched MAL Rent-a-Car Corp (MAL Rent-a-Car) as a 100% owned subsidiary in January 2026. We spoke with Tomohiro Kamiya, President and CEO of MAL Rent-a-Car, and Yoshinori Oshita, Managing Executive Officer overseeing the Operation and Fleet Management Division at Mitsubishi Auto Leasing, about the goals and prospects of the new enterprise.

Currently, there are approximately 90,000 auto repair shops nationwide, each typically owning around 10 loaner vehicles. By simple calculation, roughly 900,000 such vehicles exist across Japan. These loaner vehicles, provided by repair shops during vehicle inspections or repairs, are MAL Rent-a-Car’s primary target.

It is illegal for repair shops to charge customers for their white-numbered vehicles registered for in-house use. Furthermore, compliance standards in the non-life insurance industry have been tightening in recent years, requiring the use of legally registered rental cars to receive the fee. As a result, for many years in the repair industry, the practice has persisted of providing customers with a free loaner car, with repair shops bearing the entire maintenance cost of these vehicles.

Kamiya explains: “As part of our efforts to strengthen relationships with partner repair shops, we aim to resolve the structural issue where they bear the full cost of providing loaner vehicles. The feature of the MAL Rent-a-Car scheme is that Mitsubishi Auto Leasing purchases loaner vehicles from repair shops, and MAL Rent-a-Car leases them under a lease contract and converts them to 'wa-number plate' (rental-car license plate) vehicles, which can be rented for a fee. Our role is to facilitate a system that ensures shops receive fair compensation, thereby supporting their operational stability.”

As mentioned earlier, there are approximately 900,000 potential target vehicles nationwide. In contrast, MAL Rent-a-Car currently handles about 4,000 vehicles.

“We believe there is still significant room for growth,” continues Kamiya. “We will steadily grow our loaner vehicle business for repair shops. Looking ahead, we aim to challenge ourselves with ‘Phase Two’ initiatives, such as collaborating with non-life insurance companies and expanding into a B2C business model."

The loaner vehicle rental scheme began in 2007, originally launched by the former Hitachi Capital Auto-Lease Corp in collaboration with external partners. With the establishment of MAL Rent-a-Car, the operation is now fully integrated into the Mitsubishi Auto Leasing group. According to Kamiya and Oshita, the insourcing has objectives beyond higher profitability.

“We will overhaul our system by strengthening data integration between leasing and rental car operations to increase convenience for the shops,” explains Kamiya. “Meanwhile, Mitsubishi Auto Leasing aims to broaden its value proposition by combining the long-term leasing business with short-term rental car service to create a comprehensive framework to address diverse customer needs.”

In addition, Oshita cites further benefits of insourcing: enhancing the “entry (procurement)” and “exit (sale)” functions.

Oshita explains: "In vehicle procurement, it was customary for us to place individual orders only after finalizing lease contracts. Incorporating a rental car function will allow us to place bulk orders in units of a hundred, including rental vehicles, even when a customer leases just one. This will reduce procurement costs and secure regular delivery schedules. Our sales strategies will undergo significant changes as well. As we weren’t in the used-car sales arm before, lease-expired vehicles were sold at auction. Consequently, even with the current used-car market booming and profits relatively easy to secure, we sometimes incurred losses of ¥100,000 to ¥200,000 per vehicle in or around 2019. The new rental car operation will likely allow us to secure profits by using loan-matured vehicles as rental cars for 1 to 2 years before sale. It will contribute to the overall profitability of the Group."

The initiative also serves to cultivate the next generation of management talent.

“The new subsidiary has given us a new venue for cultivating new management talent," Oshita says. "Starting with the rental car business, ideas for expanding functions such as used car sales will likely emerge. We hope to create a company where employees find a sense of purpose and fulfillment."

Kamiya was “born and raised” in Hitachi City, Ibaraki Prefecture, and was originally in Hitachi Capital Auto Lease Corp. Oshita has 12 years of HR experience and started in Mitsubishi Auto Credit-Lease Corp. Operated by two individuals with different backgrounds, MAL Rent-a-Car will create new value for the Group, taking on an important role in Mitsubishi Auto Leasing's goal, namely, "Providing comprehensive Mobility solutions.”