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 domestic production fell in July, outweighing record overseas production that was driven by a strong recovery in Europe, China and the rest of Asia.
The SUV version of the Crown sedan, a staple in Japan for decades and the first Toyota exported to U.S., will be available as a hybrid, plug-in hybrid and EV, and sold in Japan, China and North America, sources tell Reuters.
Toyota's global production plan for June stands at about 850,000 vehicles, a cut of about 100,000 vehicles.
The Solterra, Subaru's first global EV, offers the brand's trademark all-wheel-drive setup. But on the outside, it shares a lot with Toyota.
A Japanese battery start-up is launching a commercial fleet service using Geely EVs.
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.
Toyota's new EV will be slightly bigger than its compact Corolla, the world's best-selling car of all time. One source told Reuters that the vehicle is like a "Corolla with bigger back-seat section."