Toyota has reported its first annual loss in 59 years.

Japanese car manufacturer Toyota has posted its first annual loss since 1950 as the demand for new cars continues to wane.

Toyota made a net loss of ¥437 billion (£2.9bn) compared to the record profit of ¥1.72 trillion (£11bn) the company made the year before.

Operating income also fell by ¥2.73 trillion. The car firm has attributed the decline to the effects of marketing activities and the appreciation of the Japanese Yen against the US Dollar.

Toyota has had to downsize production worldwide, including plants in the UK.

Commenting on the financial results, Toyota Motor Corporation President Katsuaki Watanabe said: “Both revenues and profits declined severely during this period. The negative impact was a consequence of the significant deterioration in vehicle sales particularly in the US and Europe, the rapid appreciation of the yen against the US dollar and the euro and the sharp rise in raw materials.”

Worldwide, sales have also fallen dramatically by 1.34 million units over the year. Japan, USA and Europe have all experienced a significant drop in unit sales.

Despite making its first-ever loss, Toyota remains positive about the future. Mr Watanabe said: “It appears to take some more time before the financial markets in the US and Europe normalise and the global economy recovers.

“However, in the 2010 fiscal year, we plan to accelerate our profit improvement activities including the expansion of our hybrid vehicle line-up.”