Toyota posted a better-than-expected 44 per cent rise in quarterly operating profit and lifted its full-year forecasts.
Toyota now expects a full-year operating profit of 2.2 trillion yen - about the size of Albania's economy - and net profit of 1.55 trillion yen thanks to a softer-than-expected yen.
Three months ago, it projected record group operating profit of 1.9 trillion yen and net profit of 1.31 trillion yen for the year to end-March.
The company's sales in the West have more than made up for sluggish demand in Japan, Indonesia and other parts of Asia. Reflecting that trend, Toyota adjusted its regional vehicle sales forecasts, expecting total demand at 8.47 million units this business year, up 20,000 from the previous projection.
Toyota has grown rapidly in the United States and Europe with popular fuel-efficient cars such as the Camry sedan and Yaris subcompact, as well as the gasoline/electric hybrid Prius, leaving big local brands struggling to defend market share.
Toyota also announced an operational and capital tie-up with Japanese truck maker Isuzu Motors to jointly develop diesel and other low-emission engines to meet increasingly tighter regulations around the world.
Toyota will buy 100 million shares, or 5.9 per cent, of Isuzu from trading houses Mitsubishi Corp. and Itochu Corp. as part of the agreement.
With a market value of $215 billion, Toyota is worth almost as much as the next four top-ranked auto makers - Honda Motor, DaimlerChrysler, Nissan and BMW - combined.