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.

The factory makes the electric Model 3 sedans and Model Y crossovers for domestic and international markets, including Germany and Japan.

Toyota said there was "a possibility" that it could lower its full-year production plan of 9.7 million vehicles as it faces a continuing shortage of parts due to the COVID-19 lockdowns in China.