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Anticipating a drop in demand, Toyota will begin cutting domestic output starting in October. The sluggish demand is being blamed on the end of a subsidy given out by the Japanese government for purchasing an environmentally friendly vehicle.

While Toyota currently makes about 14,000 vehicles per day, output will fall to under 12,000 vehicles, but was expected to make its yearly target of selling 3.2 million vehicles.

Toyota's Prius hybrid is currently the best selling vehicle in Japan, and sales will almost certainly be affected by the subsidy's end.

More: Toyota Cutting Domestic Production By 20% Starting In October on
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