(April 25, 2011) Domestic production at Toyota, the world's largest automaker, fell 62.7 percent in March.

Toyota said today its domestic production in March was 129,491 vehicles — the lowest since 1976 when Toyota began maintaining production figures. Worldwide, Toyota saw a 29.9 percent March decline in output.

Meanwhile Japan's No. 2 automaker Nissan said its corresponding domestic productionf fell 52.4 percent. Honda said on Monday it would take until the end of the year before production returned to normal, echoing comments from Toyota. Honda, which reported domestic production shrank 62.9 percent in March, said output would be at 50 percent of its original plans until the end of June. Honda reported a 19.2 percent drop in production worldwide.

Toyota may slip to No. 3 in the world automaker sales rankings for 2011 behind General Motors and Volkswagen because a shortage of parts has savaged Japan's auto sector supply chain, while damage to a major nuclear plant has disrupted power supplies.

Toyota is almost certain to lose the top global sales ranking it has held since 2008 to GM and could fall behind No. 3 VW, said Koji Endo, managing director of Advanced Research Japan in Tokyo.

"Most likely GM will produce (sell) 8 million-plus and Volkswagen will produce (sell) around 7 million, so most likely Toyota will be third, GM will be first," Endo said.

Sources: Media reports