Tokyo-based auto parts giant Takata is struggling to deal with a defect that can send metal and plastic shrapnel from the inflator canister hurtling toward drivers and passengers when an airbag is deployed.
The defect has been blamed for grisly injuries that have in some cases proved fatal.
Honda, along with other automakers, has already been ordered by US authorities to recall all units that do not contain a desiccant that keeps explosives in airbags from deteriorating.
The additional cost is estimated at 200 billion yen (USD 1.87 billion), the business newspaper said, adding that the latest move by the biggest buyer of Takata air bags may prompt other automakers to follow suit.
Immediate confirmation of the news report was not available.
Last Wednesday, the US National Highway Traffic Safety Administration ordered Takata to recall between 35 and 40 million more airbags installed in US cars.
Honda began independent operations (after split with Hero)
in 2001 with a 1.65 million units plant at Manesar in Haryana.
In 2011, it launched the second plant at Tapukara in Rajasthan with 1.2 million capacity. It opened the third plant at Narsapura in Karnataka in 2013 with 1.8 million units, making it Honda's largest two-wheeler plant in the world.
Honda India President and Chief Executive Keita Muramatsu had told
