TOKYO, June 17 (Reuters) - Japan's Nikkei share average dropped below the psychologically key 38,000 level for the first time this month on Monday, as a risk-off mood prevailed amid concerns about U.S. and domestic economic growth.

Toyota Motor slid 2.1% amid continued fallout from a certification scandal, with car-related shares among the worst performing sectors.

The Nikkei lost 1.9% to 38,814.56 as of 0211 GMT, and at one point sank as much as 2.2% to 37,956.49 for the first time since May 30.

Of the index's 225 components, 203 fell, while 20 rose and two were flat.

The broader Topix skidded 1.5%.

Each one of the Tokyo Stock Exchange's 33 industry groups declined, led by a 2.4% slump for mining.

"Basically, the Nikkei has been tracking pretty much sideways for a long time, and now it's being shaken a little but some worries about the economy - both in Japan and the U.S.," said Kazuo Kamitani, an equities strategist at Nomura Securities, projecting a correction could run as far as 37,500.

The Nikkei has mostly tracked around 500 points either side of 38,500 since late April, after hitting a record peak at 41,087.75 on March 22 and then dropping back as far as 36,733.06 a month later.

Meanwhile, automakers and suppliers shed 2.3% on Monday.

National broadcaster NHK reported that Toyota would extend a production halt for affected models by at least an extra month to the end of July.

Toyota Chairman and family scion Akio Toyoda faces a vote against his re-election at an annual shareholder meeting on Tuesday.

Suzuki Motor dropped 3.8% and Mazda lost 3.4%. (Reporting by Kevin Buckland; Editing by Sonia Cheema)