Currencies Direct

Currencies Direct

March 08, 2012 05:17 ET

UK's Love Affair With Japanese Cars Is Not Over According to Currencies Direct

Currency exchange experts state that despite a strong Yen, the market for mass-produced Japanese cars is diversified enough to weather the current economic storm

LONDON, UNITED KINGDOM--(Marketwire - March 8, 2012) - There has been recent speculation that the Japanese car market may be eclipsed by its neighbours in China due to both significant advancements in the Chinese car market and an overly strong Yen, report Currencies Direct.

During a recent episode of Top Gear, Jeremy Clarkson test drove some of the latest cars to have been made in China and to everyone's surprise, including his own, Jeremy gave the cars his seal of approval. He even stated that Chinese cars had come a long way in a short time and were likely to improve further in the coming years.

On top of this the Japanese currency is incredibly strong which is having a negative impact on Japan's export industry. The high Yen, which currently stands at 125.95 to the Pound, is making Japanese exports less appealing as prices in real terms are pushed upwards.

However, currency exchange experts Currencies Direct believe that the Japanese car industry can weather the storm and the Chinese market still has some way to go before it can go head-to-head with the well-regarded Japanese car market.

According to Alistair Cotton, corporate dealer at Currencies Direct, "the Japanese car industry is quite resilient to Yen fluctuations because of the way large-scale car production is organised by multinational companies. Japanese cars sold in Britain are generally made in Britain rather than imported, keeping costs in GBP rather than Yen". However, he does admit that more specialist producers are struggling because of the strong Yen and business has been slow for them as a result.

Mr Cotton goes on to say that although Chinese cars "have made huge strides over the past few years… brand name is everything in the car industry and it will take many more years, or even larger price discrepancies before British consumers are regularly buying Chinese cars over Japanese ones".

Exchange rates are always fluctuating as you can see on Currencies Direct, but car markets are strong around the world and the Japanese market is particularly well placed to survive the current economic situation, thanks to its large and highly diversified market.

About Currencies Direct

Currencies Direct is one of Europe's leading non-bank providers of currency exchange payment services. Since its formation in 1996 Currencies Direct has evolved and positioned from being an innovative service provider of foreign exchange for consumers and high net worth individuals into a dynamic and pioneering 'business to business' fully integrated treasury solution service provider. Headquartered in the City of London (United Kingdom) with operations in Europe, Africa and Asia, Currencies Direct is part of the Azibo Group, a privately owned investment company.

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