The total units made by eight major Japanese automakers for their domestic market fell 10.6 percent year-on-year in January to 714,580, the companies said.
The companies said domestic sales have sagged since September when the government terminated subsidies for eco-friendly vehicles.
Among the majors, Honda Motor Co.'s domestic production for January plunged 40.3 percent to 58,772 vehicles, Kyodo News reported.
Nissan Motor Co. January production was down 26.4 percent to 70,698 units, while Toyota Motor Corp. production slipped 5.7 percent to 278,804 vehicles.
The combined overseas production of the eight automakers, on the other hand, jumped 13.6 to 1,368,617 vehicles, Kyodo said. Toyota's share was 441,417 units, up 5.3 percent, while Honda reported a 29.7 percent gain to 283,315 units.
The eight companies' combined global production in January totaled 2,083,197 vehicles, up 4 percent year-on-year.