Toyota is planning to close some 300 dealerships across Japan over the next three years amid a shrinking domestic market, according to local media reports.

The Kyodo news agency said that sales companies will choose which outlets to consolidate or close based on local-area sales and demand.

Toyota plans to support the voluntary efforts of about 290 sales companies to consolidate or close their outlets, which currently total about 4,900 nationwide, sources told Kyodo.

Toyota, however, does not plan to automatically close outlets in sparsely populated areas where demand is weak in view of dealers' responsibility to provide vehicle repairs and maintenance, the report added.