Car importer in the fast lane

FERRARI’S Testarossa, the Maserati Spyder and Lamborghini’s devastatingly fast Diablo are the epitome of Italian motoring exotica.

But the car that really gets Lothian businessman Andrew Gray’s blood racing is a rare sporty number from the Land of the Rising Sun.

Although Nissan may be more familiar in this neck of the woods for producing thoroughly competent shopping trolleys like the Micra and Almera, the marque is also responsible for the fire-breathing Skyline, a car Mr Gray says has built up a "cult following" among global motorsport aficionados.

His passion for the Skyline (he owns one), and similar Japanese thoroughbreds, such as Subaru’s legendary WRX and the rally-bred Mitsubishi Evo, has spurred him into forming a business, importing and selling street-legal racing cars and other high performance vehicles.

Together with business partner Peter Georgeson - a fellow motorsport fanatic - Mr Gray has achieved what countless others only dream about. He has managed to turn a hobby into a successful company.

The pair started the operation from a small industrial unit in Loanhead last August and have already racked up more than £150,000 worth of sales, generating a half-year trading profit of about £35,000.

Now they have their sights set on even bigger things, after deciding to move to larger premises just 100 yards up the road.

"The business is really starting to take off now," Mr Gray says. "We’ve more than doubled the operation in six months.

"Although we would love to get a unit twice the size we are moving into, it’s best to take things step by step."

He claims the company, named rather prosaically Japanese Vehicle Sourcing (JVS), has established a notable following among the specialist owners’ clubs dotted around the UK and, as a result, now supplies cars to enthusiasts from all over the country.

An associated website, Powervehicles.com, has been created to spread the word to as wide an audience as possible.

Mr Gray says: "We’ve built the business up by word of mouth and by having a strong web presence. Much of the interest is now generated from the website.

"The site has a link-up with Auto Trader magazine to help raise awareness, and that is starting to bring in additional sales."

Inevitably, the pair have encountered a couple of stop signs along the road to success. Cash flow has been a constant grind, Mr Gray confesses, as was sourcing the initial funds - some £20,000 - to get the venture rolling.

But the capital is starting to build now, and because much of the business is based on sourcing - where clients cough up before a car is shipped over from Japan - the financial risks have been minimised.

The firm is also one of many north of the Border to have benefited from the Prince’s Scottish Youth Business Trust, which was launched in 1989 by Prince Charles, and targets young entrepreneurs starting up or expanding their businesses.

Augmenting the vehicle sourcing operation is a purpose-built showroom, and the new premises should allow space for a couple of extra motors.

Normally, JVS has about ten to 15 cars available from stock, but that number could grow if the buoyant demand continues, and it seems the petrol-heads just cannot get enough of a good thing.

"I’m just back from three weeks in Tokyo," recounts a spirited Mr Gray. "It’s my second trip there in the last three months. I love it, it’s such an amazing place to go for a change.

He continues: "I went intending to stay for a few days but ended up staying for three weeks. I keep extending my visits and end up buying more cars."

He admits to buying 19 vehicles after his most recent spree, with about half bought to order. Of the remainder, three cars have been snapped up just days after going on the website.

The trips east are a logical extension of the bond JVS has formed with an agent based in Japan. It now tries to hand-pick all of its four-wheeled wonders personally, choosing cars that the founders would be proud to own and drive themselves.

The vast majority of the vehicles are bought from the huge motor auctions that take place regularly in Japan, and strict rules governing the country’s motor trade mean the Lothian firm can guarantee the mileage on nearly all of its offerings. Some of the biggest electronic auctions can witness 15,000 cars changing hands in a day’s trade, with motors being sold every 15 seconds or so. Skill is required, though, as cancelled orders are punished with a £400-plus fine.

Discussing the change in emphasis that has occurred since starting out, Mr Gray says: "We began with older motors that were needing mechanical work to bring them up to an acceptable standard before sale, but now we are choosing vehicles which are of a high standard to start with - basically the more expensive, more specialist sports cars.

"The strongest demand is still for vehicles around the £8000 mark, but we have recently moved into the £12,000 to £14,000 price bracket as well. Although we don’t do finance ourselves, most people seem willing to take on a bank or car loan as the rates are so competitive at the moment."

Think average Japanese car, and most casual observers will come up with a supermini with low costs and unadventurous styling - a million miles from the motoring machismo JVS can supply.

"Some of the stuff we are dealing in is as powerful as a Formula One car," Mr Gray points out. "The rally replica cars from Subaru and Mitsubishi boast a massive following. Above that, you have an even higher power level, with the likes of modified Nissan Skylines and Toyota Supras."

He reckons a major part of the firm’s success comes down to a careful understanding of customers’ needs, regardless of the size of the budget available.

"We both enjoy and actively promote what we do. I can speak to anyone on any level about these cars, and can sell them a £40,000 modified Skyline or a basic Toyota MR2 at a tenth of the price."

JVS has its competitors, but the nascent firm is lean, ambitious and not afraid to exploit every avenue open to it. The website already features some wheels and accessories, and the business plans to further develop the parts and servicing side.

In addition, motorsport fans can expect to see the Powervehicles name emblazoned across track cars at venues such as Fife’s Knockhill motor-racing circuit.

Mr Gray explains: "The official name, JVS, is not so important - that’s simply the name on the cheques - Powervehicles is much easier to remember, and we are keen to get the branding in as many suitable places as possible."

With the business revving into top gear, it seems likely a further expansion cannot be too far off, though Mr Gray adds: "We don’t want to run before we can walk."

Skyline's the limit for petrol-heads

THE imported Japanese sports car market has grown from nowhere in the past few years to become a multi-million pound business.

Enthusiasts of high-powered models from the likes of Subaru, Mitsubishi and Nissan now have countless specialist dealerships, websites and publications to fuel their craving for speed.

The demand is for top-end performance and distinctive looks. Arguably, the leader of the pack is Nissan’s outrageous Skyline, which in R34 form is an angular aggressor sitting on massive 18-inch alloy wheels. But for some, even 300 brake horsepower - about four times the power of an average family hatchback - can prove to be on the weedy side.

A raft of modifications can result in peak power more than doubling, or, in extreme cases, rising to an incredible 1000bhp.

Although Japanese imports are relatively cheap to purchase, the cost of spare parts and the restricted market offering insurance cover means the cars may not prove to be as big a bargain as originally expected.

A 35-year-old professional living in the south side of Edinburgh can expect to pay the best part of £1500 to cover a typical 1995 Skyline, and that’s with a full no-claims discount.