Toyota reported Tuesday a nearly doubling of profit for the fiscal first quarter as solid demand in the U.S. and India combined with a favorable exchange rate to boost results.

The Japanese automaker, which makes the Prius hybrid and Lexus luxury models, recorded a 1.48 trillion yen ($9.4 billion) net profit in the April-June period, up from 841 billion yen the same quarter the previous year.

Quarterly sales rose 10% year on year to 13.5 trillion yen ($85 billion).

A cheap yen raises the value of overseas earnings for Japan’s giant exporters like Toyota Motor Corp. The U.S. dollar was trading at about 145 yen during the fiscal first quarter in 2025, but at about 160 yen for the same period this year.

The dollar is now trading at about 158 yen because of a joint U.S.-Japan market intervention, which came last week, or in the fiscal second quarter.

The favorable currency effect added 345 billion yen ($2.2 billion) to Toyota’s quarterly operating profit in the April-June period.

The automaker is figuring the yen at 160 to the dollar for the full fiscal year.

Chief Officer Takanori Azuma said Toyota sold fewer vehicles globally for the quarter just ended at 2.39 million, compared with 2.41 million vehicles a year ago.

But the automaker expects to sell more vehicles for the full fiscal year at 9.7 million vehicles, compared with 9.595 million the previous fiscal year.

Azuma said demand remains strong for Toyota hybrids in various global markets, including the U.S., where the Camry mid-size sedan and RAV4 compact sport utility vehicle are selling briskly.

Toyota plans to boost hybrid and hybrid battery production through 2030, said Azuma, adding that it will bring down costs. Toyota’s electric vehicle sales are also going strong, he said.

Among the popular models in India were the Urban Cruiser and Innova Hycross, while the Yaris remained a strong seller in Thailand and Europe.

The recent political instability in the Middle East has weighed on Japanese automakers, which rely heavily on the now effectively closed Strait of Hormuz for shipping. Toyota said it was working on tackling such challenges, including finding alternative routes.

Another potential negative impact was the 7.1 magnitude earthquake in Kumamoto in southwestern Japan, which hit July 28.

Toyota has production facilities there, with production now halted at its Tahara plant for five days through Friday. That will be followed by a summer break, unrelated to the disaster, and production will be down through the end of the month.

Toyota is projecting a 3.25 trillion yen ($20.6 billion) profit for the full fiscal year through March 2027, not as good as the 3.85 trillion yen ($24 billion) profit racked up the previous fiscal year.

Annual sales are forecast at 54 trillion yen ($342 billion), better than the 50.7 trillion yen for the previous fiscal year that ended in March.

Toyota shares fell nearly 2% in Tokyo trading after earnings results were announced.

Yuri Kageyama is on Threads: https://www.threads.net/@yurikageyama