Toyota to Slash Output in China This Month

Toyota Motor Corp. says it will reduce production in China in October perhaps by as much as 50% in response to dramatically lower demand for its vehicles there, according to Japanese newspaper reports.

The company's Chinese sales in September plummeted 15% from August, according to Yomiuri Shimbun. Demand for Japanese car brands was slammed by consumer reaction to Japan's plan to buy an island chain over which China claims sovereignty.

Toyota says it will base this month's production plan on its Chinese sales and inventory levels in September. China's national holidays have delayed the company's tally of last month's results. Most Japanese carmakers are expected to report those figures early next week.

Mazda Motor Corp. reports its volume in China plunged 35% to a 19-month low of 13,300 vehicles in September worse than its sales after natural disasters in Japan and Thailand last year.