Toyota recall knocks US market share

TOYOTA, the world's largest car maker, has suffered a sharp drop in US sales as its massive recall and unprecedented sales halt allowed rivals to grab market share.

Honda was not the biggest beneficiary of Toyota's woes in January, but yesterday raised its forecast for the year to March after reporting its strongest quarterly profit in 18 months, led by motorcycle sales.

In the latest blow to its once gold-plated quality image, Toyota said dealers in both the US and Japan had reported complaints from buyers over the brakes in its new model Prius hybrid.