The Toyota group, which includes Daihatsu and Hino, is likely to fall short of its global production target of 10.05m units this calendar year, according to the Nikkei newspaper.

The business daily reported the group told parts suppliers this week it expected production to reach 9.8-9.9m units instead. The group’s previous production record was 9.5m units in 2007.

Part of the shortfall was blamed on falling sales in China following last month’s dispute over the Senkaku/Diaoyu islands. Toyota halved production in China this month and expects output to remain 30% down for the rest of the year.

Sales in China, which had been forecast at 1m, are now expected to fall short of last year’s 900,000 units, the Nikkei noted.

Toyota brand production is expected to be around 200,000 units down on the previous target of 8.83m in fiscal year 2012 which ends on 31 March.

Toyota announced in August the group could produce 10.05m units this year following a strong start which saw output reach 6.9m units in the first eight months.