Toyota Motor on Wednesday reported a second consecutive fall in profit, as it navigates competition in China and a market shift toward electric vehicles.

Toyota Motor Corp. raised its annual operating profit outlook even though quarterly income fell short of estimates due to a downturn in global sales and production, indicating that it sees activity picking up at a faster pace later.

Japan's Toyota Motor is expected to post its second consecutive quarterly profit drop when it reports third-quarter earnings on Wednesday, as sales growth cools after a strong run powered by hybrid vehicles.