Sales at the largest U.S. automaker increased nearly 8 percent in July, driven higher by demand for fuel efficient vehicles.

General Motors said Tuesday it saw strong demand for its Chevrolet brand, especially the Chevrolet Cruze. The company said it also saw strong demand for its pick-up trucks and crossover vehicles .

GM Vice President of U.S. Sales Don Johnson said the uneven economic recovery and the U.S. debt crisis scared some buyers away in July but that GM expects them to purchase vehicles in the coming months.

GM is one of the first major automakers to report its July sales figures. Some economists look at auto sales as an indicator of consumer sentiment and economic health.

Also Tuesday, the world's largest automaker said it earned about $14 million for the three month period ending in June.

Japan-based Toyota has been trying to recover from the March 11 earthquake and tsunami that stifled production in Japan and around the the world.

The car maker said it now expects to sell more vehicles this year than it originally predicted. It also forecast an annual profit of about $5 billion, higher than the company had initially anticipated but still lower than the year before.