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Japan’s two giants Toyota and Honda are looking to cut production by at least 10 percent in the upcoming fiscal year in hopes to balance their global inventories by June.

According to Automotive News, Toyota has told its suppliers that it is targeting worldwide production of 6.2 million vehicles in the next fiscal year. Spokesman Hideki Homma said that the figure is a 12.4 percent drop from the estimated 7.08 million units in the current fiscal year ending March 31.

Honda on the other hand is looking at a production drop between 950,000 and 1 million for the fiscal year ending March 31, 2010, reports Nikkei business daily.

Both automakers will announce official production targets later this month or early April.

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