Toyota Motor Corp., the world's largest automaker has posted a smaller-than-expected loss of 77.8 billion yen or $819 million for the three months ended June 30, 2009 but lifted its forecast for the year to March 2010.

Company's results for the April-June quarter were better than its results for January-March quarter during which the company had lost 765.8 billion yen.

Toyota Motor Corp was helped by the cost reductions in making up for some of the slump in the global vehicle sales.

Government's program to encourage people to exchange their old cars for the more fuel-efficient ones also helped the company a lot.

Takahiko Ijichi, Toyota MD said, "Domestic sales are picking up helped by government subsidies and tax cuts."

Toyota Motor Corp registered an operating loss of 194.86 billion yen for the quarter ended June 30.

Revenue dropped 38.3% to settle at 3.84 trillion yen.

However, Toyota has raised its forecast of vehicle sales to 6.6 million units, up from 6.5 million units for the fiscal year ended March 2010.

On the other hand, the company contracted its yearly net loss estimate to 450 billion yen, down from earlier 550 billion yen.