Asian Honda Motor Co., Honda Motor Co. Ltd.'s Bangkok-based Asia-Oceania regional division, plans to spend 6.2 billion baht ($207 million), on its second manufacturing plant in Thailand, a move that will double its production capacity to 240,000 units annually.

Asian Honda President and CEO Tatsuhiro Oyama says the new plant will begin production in October 2008.

The decision to build the facility is the result of the Thai government's eco-car program intended to make the country a regional hub for small, fuel-efficient vehicles.

The new facility will be built in Ayutthaya province, where Honda's first factory is located. It will be the largest manufacturing plant in the 10-member Association of Southeast Asian Nations region.

The Japanese auto maker initially will build five models: the Jazz/Fit subcompact, City and Civic small cars, Accord midsize sedan and CR-V cross/utility vehicle. The eco-car will be added to the production lineup later.

Honda currently holds 10.9% of the Thai market, with first-half sales of 31,880 units, down 5.2% from year-ago's 33,628. First-half Thai industry sales tumbled 13% to 292,514 units.