Toyota says its global sales have surged by more than a quarter despite the carmaker having to recall millions of vehicles worldwide because of safety concerns.

After recalling about 10 million cars because of safety complaints, Toyota says its global sales surged last month, rising by 26 per cent when compared with the same period last year.

But the company still faces steep challenges, with rating agency Moody's last week downgrading the carmaker's credit rating.

Toyota has launched aggressive incentive programs to encourage people to stick with its cars.

In the United States, Toyota is offering 0 per cent financing on recalled models, low lease rates and free maintenance.

A recovering world economy also appears to have given the company a lift.