Two-time champion Hiroshi Masuoka of Japan severely damaged his Pajero and was forced to retire after the fourth stage of the Dakar Rally on Tuesday.

Entering the stage in second place overall, Masuoka faltered near the 100-kilometer mark, but managed to finish the sand dune-featured 386-kilometer timed section from Er Rachidia to Quarzazatte in Morocco. After the race, his team decided to drop from contention due to the damage to the vehicle.

"I encountered two big holes when I was driving at about 130-140 kilometers per hour. My car rolled forward twice," said the Mitsubishi driver, unable to complete the rally for the second straight year.

"I can't regret enough," he said. "I'll come to terms with my feelings and get over the shock."

Spaniard Carlos Sainz regained the overall lead after struggling in the third stage and dropping to fourth. Frenchman Bruno Saby and German Jutta Kleinschmidt, two other Volkswagen drivers, stood second and third, respectively.

Among other Japanese drivers, Kenjiro Shinozuka sank to 54th from 28th.

Wednesday's fifth stage is on Moroccan trails from Quarzazate to Tan Tan. The Dakar race ends on Jan. 15 in Senegal.