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 raised its full-year operating profit forecast by 9% on Wednesday, in a sign of confidence in its ability to ride out the impact of any potential U.S. tariffs. The world's top-selling automaker raised its profit forecast for the current year through March 2025 to 4.