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 could lose up to 480,000 units from January through March.
Unable to secure a number of parts, including wire harnesses from Vietnam and chips from Malaysia, Toyota said it would slash its vehicle output in September by 40 percent from previous plans.