Toyota said on Monday that its global sales for January fell 5.6% from a year earlier to 709,870 vehicles, marking the second straight month of decline amid a semiconductor shortage and shorter business days in China.

The global chip shortage continued to hit the world's largest automaker while the Lunar New Year holiday period in China, which fell in January this year, cut operating hours at its dealers, the Japanese firm said.

Overseas sales fell 9.7% to 579,652 units as the figure for the Chinese market, also hit by the termination of economic stimulus measures to promote purchase of new cars, plunged 23.5%. The North American market saw a 12.8% fall due to a decline in inventories.

Domestic sales, including minivehicles, rose 18.0% to 130,218 units in a rebound from a year before when the negative impact from the coronavirus pandemic was more severe.

The overall easing of a parts shortage helped push up production, with the company's global output increasing 8.8% to 689,090 cars, thanks to a 30.1% growth in domestic production to 211,572 units.

Overseas production increased 1.4% to 477,518 vehicles as growth in North America and Europe was partly offset by a decline in China.

Toyota earlier this month lowered its global production target for fiscal 2022, which will end next month, to 9.1 million units from 9.2 million. The automaker said it will continue to face difficulty in procuring semiconductors but noted the revised figure is still a record high.

Toyota said it expects to produce about 750,000 units in February, almost the same level as a year earlier, and about 900,000 vehicles in March, a record high for a single month.