Toyota Motor Corp (7203.T) will cut production of its premium Lexus vehicle by about 20 percent as anti-Japan protests hit sales in China, the Nikkei reported.
Toyota's sales fell about 30 percent after some of its stores in China were damaged during violent demonstrations over Japan government's acquisition of three islands in the East China Sea, the business daily said.
Worries are simmering that the row could hurt economic ties between Japan and its largest trading partner. In 2011, their bilateral trade grew 14.3 percent to a record $345 billion.
Toyota will lower production of Lexus models such as the ES, a sedan sold exclusively abroad, and the CT 200h, a compact hybrid vehicle, at a factory in Fukuoka Prefecture, reducing daily vehicle output to 1000 from 1300, the daily said.
The factory, which sent 22 percent of its output from last year to Asia, may not meet its 350,000-unit production target for this year, the Nikkei said.
However, the feud will not impact the production of other Japanese automakers such as Nissan Motor Co (7201.T) and Honda Motor Co (7267.T) as they export fewer vehicles to China, the paper said.
(Reporting By Garima Goel in Bangalore; Editing by Don Sebastian)