Toyota will launch a ¥1tn ($6.3bn) share buyback as the world’s biggest carmaker raised its annual outlook, driven by a weak yen and strong hybrid sales. While operating income fell 8.8 per cent to ¥1.1tn in the three months to June 30 due to supply chain disruptions, the company now expects an operating profit of ¥3.4tn for the current financial year.

The improved guidance follows similar moves by General Motors and Ford, benefiting from high-margin hybrid and petrol vehicles. Toyota expects to sell more than 5 million hybrid-electric vehicles for the first time this year. However, sales fell 2.9 per cent in the first half amid growing competition from Chinese rivals like BYD.

Despite optimism, Toyota's stock has faced volatility, briefly losing its crown as Japan’s most valuable company. The group has factored a yen value of ¥160 to the US dollar into its projections, even as it monitors potential impacts from recent earthquakes in Japan.