Toyota lifts annual forecast and announces stock buyback, but shares fall

Overall, Toyota's global sales fell 3.5% during the quarter. It has been hit particularly hard in China, the world's largest car market, where its sales tumbled 28%.

Like many foreign automakers there, it has seen sales suffer on slower economic growth, a marked shift towards domestic electric vehicle brands which have gained the upper hand with snazzy features — one that has only gained momentum as the Iran war pushes gasoline prices higher.

Sales in the Middle East also plunged due to the war, down by a third. But Takanori Azuma, chief officer of Toyota's accounting group, said the automaker was now able to transport vehicles overland without going through the Strait of Hormuz and from September it now expects 25% of exports to the region to be affected, down from an initial estimate of 50% for the full year.

In the U.S., Toyota's biggest market, sales were up a mere 1%, with the automaker lagging Ford, GM and Stellantis, which have benefited from strong demand for high-margin pickup trucks.