Toyota had been aiming for a high February production plan to meet strong demand.
The automaker will reduce output again in November, but the impact will not be as painful as before and Toyota sees signs of recovery on the horizon.
Toyota now sees output at 850,000 in September and only 800,000 in October,
Toyota said it would slash its global production plan for April by 150,000 units to 750,000 vehicles, compared with the original schedule reported to suppliers earlier this year.
Toyota could lose up to 480,000 units from January through March.
The industry is settling into the new year acknowledging that it's not out of the woods yet on chip shortage disruptions.