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Honda is to increase production at its UK plant at Swindon next year, taking output from the 190,000 cars expected this year to 250,000 a year, the plant's maximum capacity.

Honda president and CEO Takeo Fukui said output of both the Civic and the newly-introduced CR-V would be increased from next spring. The CR-V, unveiled at the Paris Motor Show today, will go on sale from January 2007.

Honda said that it faced unprecedented demand for the Civic. It had sold more of the car in Europe in the first eight months of 2006 than in the whole of 2005.

The increased production will be achieved by adding another shift to the Swindon plant, and more than 700 jobs will be created, bringing total employment at the plant to 4,900. The extra shift means there is no need for production equipment investment, Honda said.