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DETROIT (Reuters) - Honda Motor Co Ltd will build a hybrid version of its popular Civic compact car at its Indiana plant, where the Japanese automaker is spending $40 million to boost production capacity by 25 percent.

With the investment, Honda will be able to build 250,000 vehicles a year, an increase of 50,000, starting early in 2013.

Honda will begin building the Civic Hybrid in Indiana early next year as well. The automaker currently builds this model, its top-selling hybrid in the U.S. market, in Japan.

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