BANGKOK (AFX) - Honda Motor Co unit Asian Honda said it is considering plans to build its hybrid car in Thailand, its first outside Japan, if the government provides tax incentives.

Asian Honda, the carmaker's Bangkok-based Asia-Pacific headquarters, said increasing demand for hybrid cars, driven by high global oil prices, has prompted Honda to look for more production plants outside Japan.

"We are looking for a further development of tax benefits (in Thailand) at this stage," Asian Honda's spokeswoman told Agence France-Presse.

Because producing the hybrid passenger car is more expensive than conventional cars, Honda's executives have said making it outside Japan is difficult.

Honda's Bangkok-based spokeswoman cited local availability of automotive parts suppliers as a key reason for Honda's interest for further expansion in Thailand.

The automaker already makes passenger sedans and a "multipurpose vehicle" here.

Honda cars made in Thailand could enjoy a high ratio of local content enabling the carmaker to ship its hybrid vehicles overseas at a competitive cost, the spokeswoman said.

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