Toyota Motor reported a second-quarter 69 per cent plunge in its net profits on Thursday and warned it would barely make money in the second half owing to falling US and European vehicle sales and a debilitating surge in the yen.

The downturn at the industry’s perennial top earner was much sharper than analysts had expected, and underlined the depth of the crisis in the motor industry as the credit crunch turns into a potentially long-lasting economic slump.