Nissan Motor has said it plans to cut vehicle production capacity in Japan by 15% from July in response to rising manufacturing costs and weakening domestic demand.

The company’s production capacity in Japan will be cut to 1.15m units, from the current 1.35 million units, with one of the two production lines at the Oppama plant to be idled.

Domestic production of the Note, Tiida and Latio small cars has been discontinued, according to local reports, with some of the output being relocated to Thailand.

The company said it will redeploy the workers in other operations and that no redundancies will be made. The spokesman added that the production line can be started up again if required in the future.

Toyota also recently announced that it will cut its Japanese capacity by 400,000 to 3.2m units over time, with output to be relocated in lower-cost countries.

Nissan CEO Carlos Ghosn has repeatedly warned of the impact that the strong yen is having on the costs of the company's Japanese operations.