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.
Toyota could lose up to 480,000 units from January through March.