Honda Motor Co. announced on Wednesday that it plans to build new plants and increase car output as the Japanese carmaker ramps up global capacity to meet the growing demand for its fuel efficient models.

New plants are expected in Argentina and Thailand, while there will be increased output at the company's Mexico and Turkey plants.

A Thailand plant will begin operating in the latter half of 2008 and will cost 23 billion yen ($188 million) to build. The new plant will double Honda’s production capacity in Thailand to 120,0000 vehicles per year.

Tuesday, an Argentine official said that Honda plans to invest $100 million to open a plant which can build 30,000 cars per year. The plant will be operated in 2009.

Honda also plans to boost its North American capacity by increasing production at its plant in Mexico from 30,000 to 50,000 vehicles per year.

The firm also plans to boost production in Turkey from 30,000 to 50,000 in early 2008.

Honda has long term plans to increase its global sales to over 4.5 million vehicles by 2010, from 3.55 million In e2006.