Toyota raises profit forecast as hybrid demand remains strong

Toyota has raised its net profit forecast for the financial year ending 31 March to 3.57 trillion yen (£17.9bn), up from 3.25 trillion yen in its August estimate, as strong demand for hybrid cars supports the world’s biggest carmaker.

The company also benefits from a weak yen, which increases the value in Japanese currency of sales made in markets such as the United States and Europe. Toyota said the effects of rising material prices and production disruptions caused by earthquakes and floods had been limited.

The higher forecast comes despite fierce competition from Chinese rivals. Toyota has long been a leader in hybrid technology, which combines a petrol engine with an electric motor.