TOKYO -- Toyota Motor on Thursday raised its full-year net profit forecast through March 2022 to 2.49 trillion yen ($ 21.8 billion), up from the 2.3 trillion yen profit it had predicted in May, as the Japanese automaker expects an aggressive output increase in the coming months will lift its profit and make up for an earlier production cut.

Pressures from lingering chip shortages, as well as COVID-19 restrictions affecting production of parts in Southeast Asia, still weigh on the automaker. But Toyota believes the situation is improving and that it can meet robust auto demand around the world.

Strong sales of highly profitable models in major markets are expected to contribute to its performance. Sport utility vehicles, which are selling well in the U.S., China and Japan, are more expensive than compact cars, and thus more likely to drive gross margins, offsetting Toyota's production decline in the second quarter, including September's 39% on-year cut. The weaker yen is also likely to contribute to the automaker's bottom line.

Toyota is rushing to increase output to make up for the lost production. It announced on Oct. 15 that it planned to make 850,000 to 900,000 vehicles in November, a 15% cut from what it had previously planned and reaching a record output level for a single month, in a sign that the company is regaining confidence as chip supplies improve and Southeast Asia recovers from COVID-19.