Reports in Japan say Toyota's annual production there will fall below three million vehicles for the first time in 30 years.
The car maker has already forecast its first loss in its 70 year history.
Toyota's shares fell 3.9% to 3,720 yen ($US37.87) in Tokyo after a report in the Yomiuri newspaper.
The company said it has yet to forecast its sales and production data for the current financial year.
Toyota has already cut production in the United States, Canada, Mexico and Britain.
Toyota expects to incur a net loss of 350 billion yen ($US3.6 billion) for the fiscal year ended March 2009. Results will be announced on 8 May.
The BBC reports the carmaker made a record 1.72 trillion yen profit in the previous financial year, but has since been hit by a strong yen which has diluted its earnings overseas.
Toyota's global production for February was down 49.6% on a year earlier to 434,179 vehicles.
Meanwhile, domestic output for the month fell 56.4% on the year before to 207,743 vehicles.