Honda Motor, Japan's second-largest vehicle manufacturer, has said it expects record sales in 2003, up 10% to 3.1 million from this year.

On Tuesday rival Toyota Motor also predicted it would have a record year in 2003, with a 5% rise to 6.5 million vehicles.

The prediction in the companies 2003 business plan comes despite a weak global car market and warnings from European and US auto-makers.

Honda President Hiroyuki Yoshino said sales would be pushed by Asian orders, especially from China, while the rest of the world there would be flat demand.

At 0400 GMT, shares in Honda were down 1.8%.

Production boost

Honda said it will raise the annual output at its Chinese joint venture to 240,000 units by spring 2004 from the present 50,000, and will invest another 660m yuan (�50m; $78m) in Guangzhou Honda Automobile.

Honda also plans to boost production in the US, Canada, Thailand, Malaysia, Indonesia

Honda Motor, Japan's leading motorcycle maker, also said production of its Super Cub, the most popular motorcycle in history, passed 35 million last month, 44 years after it was first launched.

The Super Cub, developed by company founder the late Soichiro Honda, was first exported to the US in 1959 and has been sold in 160 countries.

Its four-stroke 50cc engine revolutionised motorbike design when two-stroke engines were standard.