Toyota earnings could be hit hard if the recent yen strengthening trend continues for a long time, company president Fujio Cho said on Monday, according to Dow Jones.

“We’re worried about this,” Cho reportedly said at a press conference.

According to Dow Jones, Cho said the recent yen rise doesn’t reflect Japanese economic fundamentals, and is excessive while a short-term yen strengthening, which may not affect car makers’ earnings much, could have a serious impact if it lasts a long time.

Dow Jones noted that the yen soared to 33-month high of Y110.91 last Tuesday.

Cho reportedly said it is too early for Toyota to change its foreign exchange rate assumption – the car maker needs to monitor whether the yen rise will continue and how far it will go.

Toyota Motor currently expects the dollar to average Y115 this fiscal year, Dow Jones added – noting that, at 0553 GMT on Monday, the dollar was trading around Y111.28.

Asked about Japanese car makers’ rising market share in the US and the political implications concerned, Cho reportedly said he doesn’t expect trade friction with the US to occur.

According to Dow Jones, Cho said that, compared to 1995-1996, when Japan and the US clashed in a trade war over car, semiconductor and other industries, the business environment is considerably different and he cited increasing local production and parts procurement in the US by Japanese makers.

However, Dow Jones added, Cho said the car maker will cautiously monitor the situation, including rising complaints from US makers about Japan’s yen policy.

Dow Jones noted that, in August, Toyota grabbed the third-largest market share in the US for the first time, overtaking DaimlerChrysler‘s Chrysler group, while Japanese car makers have recently boosted their total US market share to around 30%.