Japan's transport ministry has decided to cancel its certification that allows a Toyota Motor group company to produce three engines after it submitted false certification data.

The ministry conducted onsite inspections at Toyota Industries after irregularities came to light concerning data on a total of eight engines for forklifts and other vehicles.

Ministry officials say they've now confirmed that the company engaged in malicious misconduct on emissions tests, including for two types of engines used in forklifts and one for construction machinery.

The construction machinery engine also fails to meet the government standard for exhaust.

On Thursday, the ministry issued the company a correction order, demanding drastic reforms.

The head of the bureau in charge of logistics and automobiles said the misconduct was regrettable. He added that it could seriously undermine public trust in the certification system and Japan's manufacturing industry.

Toyota Industries President Ito Koichi later told reporters that his firm would strive to do better. "The ministry instructed us to start from scratch," he said. "We will seriously accept the guidance and work steadily."

The ministry also asked Toyota Industries to submit a report on its preventive measures within a month.