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.
Toyota's overseas output climbed 5.6 percent to 3.35 million vehicles through June, while production in Japan fell 18 percent to 1.73 million.
Toyota's leader is warning the government that its road map to net-zero emissions needs to be better tailored for the nation's economy.