TOYOTA CITY, JAPAN - Toyota Motor is expected to revise down its projected car sales in Japan to a little more than 1.7 million units from the current 1.78m.

When the automaking titan set its 2006 domestic sales target at the end of last year, it estimated sales of new cars, trucks and buses, excluding minivehicles, would total 4.05m units, up 3% from 2005. In the first six months of the year, however, domestic sales fell below 2m units for the first time in 23 years.

The company has also announced it is recalling 268,000 vehicles in Japan over a faulty engine, including Corolla models and the compact car Vitz.