Toyota 09/10 output seen -12% at 6.2 mln cars-paper

TOKYO, April 21 (Reuters) - Toyota Motor Corp (7203.T) will likely produce about 6.2 million vehicles globally in the business year to March 2010, the Yomiuri newspaper reported on Tuesday, down more than 12 percent amid a global sales slump.

The paper said Toyota's domestic production for the year would be around 2.8 million vehicles, a fall of more than 30 percent since its peak two years ago and slipping below 3 million for the first time in 31 years.

A Toyota spokesman could not immediately confirm the report.

Automakers around the world have been grappling with a sudden drop in demand since late last year, but the pain is especially pronounced at Toyota, which is saddled with too much capacity after years of building new plants to keep up with demand.

Toyota forecast it would make 3.4 million vehicles in Japan and 3.68 million overseas on a parent-only basis in the financial year that ended on March 31.

The Yomiuri said the expected slide in production could make it hard for Toyota to keep its work force at current levels. (Reporting by Sachi Izumi; Editing by Michael Watson)