March 24 (Bloomberg) -- Toyota Motor Corp., the world’s largest automaker, said its global production fell the most in at least 23 years as the worst recession since the Great Depression hammers vehicle demand in North America and Europe.

The company’s output plunged 53 percent to 358,573 vehicles in February from the year-ago period, the company said in a statement today. That’s the biggest percentage drop since the company began releasing the tally in January 1986. Honda Motor Co., the country’s second-largest automaker, built 190,680 vehicles, down 43 percent. Output at Nissan Motor Co., Japan’s No. 3 carmaker, slid 51 percent.

Toyota and other Japanese automakers widened production cuts to reduce their dealer’s inventories. U.S. auto sales last month fell to the lowest since December 1981 after rising unemployment and tighter credit deterred car purchases.

“Tighter credit is killing demand in the U.S.,” said Hitoshi Yamamoto, chief executive officer of Tokyo-based Fortis Asset Management Japan Co., which manages $5.5 billion in Japanese equities. “A recovery in the U.S. is essential to help Japanese automakers ease production cuts.”

Cars and light trucks sold at an annual pace of 9.12 million in the U.S. last month, a drop from 15.4 million a year earlier, according to Autodata Corp. Sales tumbled 40 percent for Toyota, 38 percent for Honda and 37 percent for Nissan. General Motors Corp., the world’s second-largest automaker after Toyota, had a 53 percent plunge. Ford Motor Co.’s sales dropped 48 percent.

Toyota rose 3.9 percent to 3,170 yen, as of 2:40 p.m. on the Tokyo Stock Exchange. Honda rose 2.6 percent to 2,330 yen. Nissan rose 1.6 percent to 381 yen.

Toyota

Toyota, which expects its first net loss in 59 years, reduced its domestic production 64 percent last month. It built 217,446 vehicles outside Japan, down 42 percent. Exports plunged 69 percent.

The company forecast production of its Toyota- and Lexus- brand vehicles to fall 19 percent to 7.08 million units for the year ending this month, to reduce inventories. Toyota plans to further trim its output to total 6.2 million vehicles next fiscal year, it said on March 2.

Honda’s production fell 48 percent in Japan last month, the company said. Honda widened production cuts by about 50,000 vehicles in Japan and North America in February and March responding to lower demand, it said in January.

Nissan, on course to report its first annual loss in nine years, halted domestic production for as many as 13 days cut output by 64,000 vehicles in February and March. The carmaker plans to eliminate 20,000 jobs next fiscal year, it said last month. month.

Suzuki Motor Corp., Japan’s fourth-largest automaker, said global production fell 20 percent last month. Mazda Motor Corp., Japan’s second-largest car exporter after Toyota, built 55 percent fewer vehicles.

Mitsubishi Motors Corp.’s production plummeted 65 percent in February. Fuji Heavy Industries Ltd. reported a 41 percent drop.

To contact the reporter on this story: Naoko Fujimura in Tokyo at nfujimura@bloomberg.net.

Last Updated: March 24, 2009 01:44 EDT