Toyota Motors said its car production fell 62.7 percent in March due to a parts supply crunch following the earthquake and tsunami.
Toyota, the world's top-selling carmaker last year, said its domestic production in March was 129,491 vehicles.
Damage from the Great East Japan Earthquake forced the carmaker to suspend operations at some factories, the Nikkei reported.
The company exported 107,751 cars, down 33.4 percent -- down for the first time in two months.
Domestic sales dropped 45 percent to 115,196, marking the seventh consecutive monthly decline.
Overseas production slid 3.1 percent to 412,974 -- the first time it has fallen in five months.