Toyota has raised its net profit forecast for the current business year thanks to increased production efficiencies in its Chinese operations and improved sales in North America.
Toyota, the world’s biggest-selling carmaker, has raised its net profit forecast for the business year that ends in March. It credits that to increased production efficiencies in its Chinese operations.
In addition favorable exchange rates in the region are boosting earnings even as economic weakness in some Asian countries meant fewer vehicles being sold.
“Our Chinese operations have improved, which has increased our profitability. This is why we’ve raised our profit forecast,” Managing Officer Tetsuya Otake told a results briefing.
Toyota has also lifted its sales forecast for North America, where it has been enjoying solid growth.
The United States is its largest market and posted record annual sales last year, with profits helped by the weaker value of the yen against the US dollar.
Toyota raised its full-year vehicle sales forecast for the North American market to 2.87 million from 2.85 million, as a stable US economy keeps demand strong for its more profitable SUVs and pick-up trucks.
Japan’s biggest carmaker sold 10.15 million vehicles globally in calendar 2015, beating out Volkswagen which has seen its sales suffer due to an emissions-cheating scandal.