The sweeping shutdowns, which begin in August and run through the end of September, will hammer Toyota output in every major market -- Japan, the U.S., Europe, China and Asia.
Toyota had been aiming for a high February production plan to meet strong demand.
The automaker said parts such as semiconductors and wire harnesses are in short supply because of bottlenecks triggered by lockdowns in southeast Asia.
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 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.
Japanese carmaker financials show how the COVID pandemic and the chip shortage continue to challenge them — despite positive fundamentals.
Toyota could lose up to 480,000 units from January through March.
Subaru's output fell 20 percent to 207,000 in the quarter, while deliveries plummeted 35 percent to 173,000 in the same period.
Toyota and Lexus dealers, who have been getting by for months with some of the leanest inventories in history, will see that trickle of vehicles dry up further.
A weakening yen has emerged as a windfall for the country's automakers, helping buoy results just when they need it most amid pinched production and derailed deliveries.
The industry is settling into the new year acknowledging that it's not out of the woods yet on chip shortage disruptions.