Toyota Motor Corp said on Tuesday it would build a new diesel engine factory in Thailand for 17.3 billion yen ($162 million) with capacity of 150,000 units per annum.

The new plant, to be built on its existing factory 70 km southeast of Bangkok, will add Toyota’s annual capacity of diesel engine to 350,000 units and create about 700 jobs in 2010, according to Toyota statement.

The expansion is aimed to meet an increasing demand in the IMV vehicle series, consisting of pickup truck, sport utility vehicle and the minivan.

In the meantime, the Japanese auto giant announced in Australia that will expand its production of hybrids to Australia and Thailand.

Toyota’s hybrid factory in Thailand will be its key hub for Asian operation and aims to churn out 9,000 Camry Hybrids for the regional market.