On track to surpass General Motors Corp. as the world's No. 1 automaker this year, Toyota announced a plan Friday to sell 10.4 million vehicles worldwide next year, breaking an industry record of 9.55 million held by GM since 1978.

Toyota President Katsuaki Watanabe presented the ambitious sales plan in an outline of the company's growth strategy, which includes working on product quality and introducing technological innovations such as luxury Lexus hybrids. The company plans to boost sales not only in North America and Europe, but also in emerging markets such as Brazil, India, China and Russia. Sales in Japan, though, were expected to stay relatively flat.

"We will win in every opportunity, reduce risks, and even turn risks into opportunities," he said at a Tokyo hotel.

Toyota has been closing in on GM, taking advantage of the popularity of its Camry sedans, Prius gas-electric hybrids and other good-mileage models at a time when gasoline prices are soaring.

General Motors, which has been forced to scale back production amid intensifying competition from Toyota and other rivals, posted its third straight quarter of profit in the April-June period -- it earned 891 million U.S. dollars in contrast to a 3.4 billion dollar loss a year ago.

Toyota and its group companies, including subsidiaries Daihatsu Motor Co. and Hino Motors Ltd., sold 8.8 million vehicles worldwide last year, trailing GM at 9.1 million vehicles.

Toyota has said it plans to sell 9.34 million vehicles this year, and 9.8 million vehicles in 2008. The 2009 target shows Toyota is determined to continue on that solid growth track.

Toyota has already beaten GM in global vehicle sales for the first six months of this year, selling 4.72 million vehicles, compared to GM's 4.674 million vehicles.