Toyota Motor Corp reported a 38.8-per-cent drop in its global output for May to 442,621 units year-on-year, the company said Thursday.

The world's top automaker's domestic production slipped 41.9 per cent to 192,637 units and its overseas output decreased 36.2 per cent to 249,984 units.

Exports fell 51.3 per cent to 100,117 units in the reported month as exports to almost all regions declined, it said.

Domestic sales fell 23.1 per cent to 82,394 units.

The firm does see some hope for improvement in Japan on a month-on-month basis thanks to new government tax breaks and subsidies for fuel-efficient cars.

Toyota is a leading manufacturer of hybrid gasoline-electric cars.