Honda looks to Thailand for cheaper hybrids

Honda is considering a move to build hybrid vehicles in Thailand as a way to cut down on production costs according to a recent story.

"We are looking for a further development of tax benefits (in Thailand) at this stage," Asian Honda's spokeswoman told AFP on Tuesday.

In addition to tax benefits, "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."

Honda's second generation Civic hybrid is now hitting showrooms across the country. It's new hybrid drive should help the hybrid Civic better compete with the Toyota Prius. In addition, Honda offers the Accord hybrid.

Toyota has also announced that it will develop and build hybrids in China as well.