Honda recalls 440,000 more cars in Japan over air bags

Honda is recalling another 440,000 cars in Japan over air bag inflators made by Takata that can explode and hurl shrapnel into the vehicle.

The recall announced today is part of 5.7 million Honda vehicles that will be recalled worldwide over the latest Takata air bag problem. Included in that total are 2.2 million Honda vehicles recalled earlier this week in the United States for the same issue.

Honda would not say where the other recalls will be. The vehicles recalled in Japan cover the 2005 to 2014 model years and include a popular subcompact called the Fit.
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Commenting on the impact of pollution issues and the Supreme Court's ban on diesel SUVs and cars with engines of 2,000 cc and above in the Delhi and NCR, Ueno said: "It actually has some effect on demand from customers."
 

When asked if such issues would have an impact on Honda's investment plans for India, he replied in the negative.

"In the long term, Honda sees a big potential of the Indian market, in terms of size and population. We have plans to keep on investing in the country," Ueno said.

He further said government policy is now supporting to shift the market from diesel to petrol. Price of diesel and petrol is coming closer.

"For manufacturers it is very important to quickly adapt to the changes," he added.

As far as Honda is concerned, Ueno said: "All our cars have both diesel and petrol. We are trying to shift the supply with some flexibility in the factory. So, if we maintain the total volume, our overall sales in not affected."

For the short-term, he said the company doesn't require immediate investments as "we have already expanded the capacity of the Tapukara plant. Currently we don't have any plant to expand the capacity in the near future."

On the sales expectation for the ongoing fiscal, he said: "The market situation is bit grey, cloudy. With new models like the BR-V, we are expecting some steady growth from the last year's sales."

Ueno also said the company has no plans for phase out its compact car Brio and multi-purpose vehicle Mobilio both of which are struggling.