Japan's eight major automakers produced 750,076 vehicles in July, down 9.4% year on year, yet an improvement from the 15.2% fall in June, as they continued to recover from the disruptions caused by the 11 March earthquake and tsunami.

Nissan Motor expanded its production in Japan to 111,790 units, up 15.3%, boosting the rate of increase from 1.9% the previous month, Kyodo News said.

Toyota Motor said its domestic output fell 12.5% to 262,328 units but the figures are near pre-earthquake planned levels and it expects output to return to full levels in September.

Suzuki Motor rolled out 88,457 units, down 8.7%.

Mitsubishi Motors production was down 20.1% to 50,808 units, the first year-on-year monthly decrease since April this year, the company said.

Overseas production by the eight carmakers declined, with Honda seeing its biggest July drop in 10 years, falling 40.4% to 135,918 units. Mazda also logged a 31.5% drop to 23,898 units.

Toyota's sales fell 35.2% to 106,412 units. Those of Fuji Heavy Industries (Subaru) and Daihatsu dropped 30.9 and 9.2%, respectively, to 14,069 and 48,558 units, the report said.