Toyota has said it will cut production capacity in Japan by 20% within five years and shifts output to other countries, particularly emerging markets.
The carmaker confirmed reports in the Mainichi newspaper that it planned to reduce domestic capacity from 3.9m to about 3.2m vehicles annually by 2015.
Factories in Japan will specialise in concept vehicles, cars with new technology and innovative low-cost production systems, executive vice president Atsushi Niimi said.
The company plans to shut down a line at the Takaoka plant in Toyota City, Japan, where it is based, from the current fiscal quarter to the end of calendar year 2011. The move will reduce output by about 220,000 vehicles.