Bangkok  - Toyota is to begin production of Camry hybrid cars in Thailand next year, making the kingdom the third production base for the popular energy-saving model after Japan and the United States, media reports said Wednesday.

Toyota Motor Thailand plans to invest 90 million baht (2.7 million dollars) to upgrade its factory in Chachoengsao province to assemble 9,000 of the petrol-electric models per year for the domestic market, the Bangkok Post reported.

The Thai government has agreed to reduce the excise tax to 10 per cent on the Camry models, considerably less than the 30-per-cent excise tax on ordinary passenger cars.

Toyota said it is to also manufacture Camry hybrids in Australia starting in 2010. (dpa)