Tokyo  - Toyota Motor Corp on Tuesday reported a net loss of 77.9 billion yen (819 million dollars) for the first quarter of the current fiscal year from net profits of 353.6 billion yen in the April-June period of 2008, as global demand remained low, the world's largest carmaker said Tuesday.

Losses were, however, smaller than expected, narrowing from 765.8 billion yen in the previous quarter, thanks to strong sales of its Prius hybrid car.

Operative losses for first three months of the business year, which starts in April, were 194.8 billion yen, from an operating profit of 412.5 billion yen in the same period last year, making it the third consecutive loss-making quarter for Toyota.

Sales for the group, which also includes Daihatsu Motor and Hino Motors, were down 38.3 per cent year-on-year to 3.83 trillion yen.

Global vehicle sales were down 35.9 per cent to 1.4 million units, which sales dropping by double digits in all key markets - Japan, North America, Europe and Asia.

Toyota narrowed its operating loss forecast for the 2010 business year through March 31 to 750 billion yen, down from an earlier estimate of 850 billion yen, which, however, remains the worst loss in company history. Net loss predictions were trimmed to 450 billion yen, down from 550 billion yen.

The carmaker expects demand for its hybrid car to rise. For the first time in five years, Toyota foresees a spike in demand on the stagnating Japanese market, following government incentives for buying low-emission cars.

Toyota recorded 250,000 advance orders for the new Prius model since May, leading to waiting times of up to six months.

Full year sales forecasts were raised by 100,000 units to 6.6 million units.

Toyota's president Akio Toyoda expressed hope to lead the company back into the black by March 2011.(dpa)