Honda Motor is considering building petrol-electric hybrid vehicles in China to expand sales by producing them locally to lower costs.

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Sources familiar with the matter told Kyodo News Honda will decide later on the timing to begin production, the investment amount and other details for the company’s first overseas production of hybrid vehicles.

Honda is also eyeing their production in the United States to build up a global production structure to enhance its brand image through its environment-friendly technologies.

Honda is selling Civic hybrid sedans in China and plans to market the Insight hatchback and CR-Z coupe hybrids in the promising market in 2012.

Rival Toyota began production of Camry hybrid sedans at a joint venture plant with a local automaker in Guangzhou, Guangdong Province, in March.

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Toyota also builds Camry hybrids in the US, Thailand and Australia and the Auris hybrid in Britain.