Honda has announced plans to develop motorcycles powered by hydrogen fuel cells.

By 2009, the company expects to be leasing fuel cell-powered motorcycles, and is also looking to boost the overall efficiency of its hybrid systems during that time by combining it with more efficient engines.

Honda is also looking to maintain its position as a leader in the development of fuel cell technology in the coming years.

News of the fuel cell motorcycles initiative came as the company announced its expectations for the coming months and years.

Predicting growth of 23 per cent by 2006/2007, Honda suggested its annual car sales will reach four million units in that time.

The firm is expecting a 1.8 per cent fall in its motorcycle segment this year, down to 10.295 million units, as the Asian market falls back from last year's high levels.