Toyota Motor Corp plans to reduce its domestic vehicle production by about 20 percent from October as it expects a drop in demand after the Japanese government ends subsidies on purchasing so-called eco cars, Kyodo news agency said on Wednesday.

Toyota plans to make less than 12,000 vehicles a day from October, with the end of subsidies on more environmentally-friendly vehicles in late September, the report said.

That compares with the company's domestic production plan of 14,000 vehicles a day between July and September.

Toyota, however, is likely to stick to its annual domestic production target of 3.2 million units in the current fiscal year to March as it expects a bounce in sales after October, the report continued.

Toyota spokeswoman Mieko Iwasaki said the report was not based on information from the firm.

(Reporting by Mariko Katsumura)

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