Toyota had been aiming for a high February production plan to meet strong demand.
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 automaker has asked suppliers to make up for lost output so it can build an additional 97,000 vehicles between December and the end of March, Reuters reported.
Toyota now sees output at 850,000 in September and only 800,000 in October,
The comment comes after the automaker said a parts shortages would cost it 14,000 vehicles in lost production in December.
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.
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.
A major earthquake in Japan threatens to exacerbate the ongoing global microchip shortage as the total number of vehicles removed from production plans this year surpassed 1 million.
The chip shortage continues to hammer away at global vehicle production as automakers await additional semiconductor manufacturing capacity to come online.
The number of vehicles cut from automakers’ production plans this year because of the chip shortage surged 42 percent from a previous estimate, according to AutoForecast Solutions.
Honda blamed delays in receiving parts and logistics due to COVID-19 and semiconductor shortages for the reduced output at two domestic plants.
Plants that build the Civic, CR-V, Honda e, Jazz/Fit and HR-V will be affected by output cuts.
Another 75,300 vehicles were eliminated from schedules because of the semiconductor shortage, mostly at North American factories.
Automakers are still shaving back production plans due to semiconductor shortages, but the worst-case scenario for North America just got a tiny bit better.
North American factories took another 26,000 vehicles out of their production schedules last week, significantly more than companies were cutting at the beginning of the month.
Japanese carmaker financials show how the COVID pandemic and the chip shortage continue to challenge them — despite positive fundamentals.
Automakers such as Honda have been forced to slash production due a shortage of microchips and now face an increase in costs amid China's COVID-19 curbs and the war in Ukraine.
Keeping the flow of new Toyotas and Lexuses coming to U.S. dealers amid dozens of simultaneous threats falls to two executives who manage it all the Toyota way.
Toyota could lose up to 480,000 units from January through March.
Plant shutdowns have translated into lost wages for tens of thousands of workers across Mexico due to furloughs and layoffs.
Subaru's output fell 20 percent to 207,000 in the quarter, while deliveries plummeted 35 percent to 173,000 in the same period.
The global microchip shortage could be what finally ends the automaker's nine decades of dominance on its home turf.
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.
Respondents in the U.S. and China appeared to be the most optimistic about profitability moving forward, the data showed.
The industry is settling into the new year acknowledging that it's not out of the woods yet on chip shortage disruptions.