Japan’s second largest automaker announced on Wednesday its plans of future investments in hybrid research and also its expectations on growing sales for 2008.

According to Honda’s Chief Executive Takeo Fukui, “sales will grow in all regions, so global sales will rise again.” The predictions made are based on the 2007 sales that topped last year’s sales by 6 percent, reaching 3.762 million cars.

The Honda representative said that the 1.55 million cars sold in 2007 in the U.S. will turn into 1.59 million in 2008. According to him, the popularity and the strong brand of the Japanese carmaker will boost its sales and outrun its competitors. The rising gasoline prices on the American market oriented customers towards Honda’s fuel-efficient small cars and SUVs, whose sales exceeded those of General Motors and Ford Motors.

The 23 percent growth in the European market determined Honda specialists to project another 11 percent growth in sales for 2008, reaching 420,000 units. At the same time, the South American and the Chinese markets are expected to climb approximately 30 percent next year.

The Japanese market is not to remain neglected, as this year’s sales declined 12 percent compared to last year. Consequently to that, Honda plans of bringing four new models next year on the homeland market, and hopes for improved sales in 2008.

Honda also announced a $423 million investment in a new research center for next generation cars. One of the objectives is that the new hybrid models will account for 10 percent of the Honda’s total sales by 2010.

“The competition in hybrids has just begun,” said Fukui, adding that Honda’s hybrid system will overrun Prius, the top-selling hybrid by Toyota. The Japanese automaker announced the launch of its hybrid, projected to run on gas and electricity, in 2009 and expects sales to reach 200,000 vehicles a year.