Toyota and Honda have been making hay while the sun shines on their hybrid vehicles in Japan. But that is set to change as the Japanese government’s incentives for eco cars, which has been running for the past two years is about to end. The Toyota Prius has been the top-selling vehicle in Japan for more than a year and even the mixed-reviewed Honda Insight has sold beyond expectations. The eco car incentives end in October and with the expected drop in sales, Toyota is now planning on a sizeable cut to domestic production.

News agencies in Japan have been reporting that Toyota will slash production from its current 14,000 vehicles a day to fewer than 12,000 for the final quarter of the year. The automaker does expect sales to recover again later in the year and has kept its same production targets for the full fiscal year.

Toyota and Honda have been making hay while the sun shines on their hybrid vehicles in Japan. But that is set to change as the Japanese government’s incentives for eco cars, which has been running for the past two years is about to end. The Toyota Prius has been the top-selling vehicle in Japan for more than a year and even the mixed-reviewed Honda Insight has sold beyond expectations. The eco car incentives end in October and with the expected drop in sales, Toyota is now planning on a sizeable cut to domestic production.

News agencies in Japan have been reporting that Toyota will slash production from its current 14,000 vehicles a day to fewer than 12,000 for the final quarter of the year. The automaker does expect sales to recover again later in the year and has kept its same production targets for the full fiscal year.