Sales surge drives Toyota to record

SOARING sales in Europe and booming US demand for its Lexus luxury cars took Toyota Motor to record profits in the year to end-March. Japan's largest motor manufacturer lifted net profits 31% to 616bn yen (£3.3bn), as massive sale promotions in the US boosted sales and the weaker yen pumped up repatriated earnings.

A rise in overseas sales of 11% to 3.6m was also helped by the strong performance of a range of new models, the company said today. The value of European sales rose 52.3% to 1,594.4bn yen (£8.5bn), as production in the company's factories around the region rose 176,000 to 309,000, and total sales, including exports from Japan, increased by 175,000 cars to 866,000. Toyota president Fujio Cho said the company was now on course to raise annual production in Europe to 800,000 cars a year by 2005.

Today's figures came in ahead of analysts' forecasts, and were achieved despite a slump in sales in Japan as consumer demand dried up.

The zero-coupon financing deals which have kept buyers coming to the car lot boosted sales of the Corolla and Camry ranges, as well as generating further demand for the Lexus vehicle range, which is produced in Japan. Toyota now has 10% of the US market, which has also brought record profits to rivals Honda and Nissan this year.