RPT-Toyota cuts China production due to sales slowdown

(Repeats to new USN)

TOKYO, Sept 29 (Reuters) - Japan's Toyota Motor Corp (7203.T) has started cutting its production in China as sales growth in the area is not increasing as expected.

The automaker declined to specify the level of production adjustment and types of models.

But the Nikkei said in its Sunday edition that Toyota has began to reduce by about 10 percent production of small and medium-sized automobiles at its main factory in Guangdong, which has an annual production capacity of 200,000 vehicles.

"Sales in China are not as expanding as we had thought. Sales in the market as a whole are not expanding as rapidly either. So we are taking flexible approach to adjust production such as by altering the pace of production in Guangdong operation," said Paul Nolasco, a spokesman of Toyota.

Sales of cars in China fell 6.2 percent in August, the first monthly decline in more than two years as high fuel prices and a falling stock market dented consumer demand, the country's industry association said earlier this month [ID:nSHA268542].

The company declined to disclose its production target by area for this year but China's production was 450,000 last year, Nolasco said.

Toyota's 2008 sales target in China is 700,000, which is 40 percent higher than the previous year.

Earlier this month, chairman of the Japan Automobile Manufacturers Association Satoshi Aoki said that demand in healthy markets such as China and India were warranted close monitoring as sales had recently weakened compared with earlier growth rates.

Shares of Toyota ended the morning session lower 1.5 percent to 4,670 yen, with the Nikkei index .N225 rising 0.5 percent. (Reporting by Kaori Kaneko; Editing by Louise Heavens)