The Japanese car maker - already experiencing supply and manufacturing issues following the eartquake and tsunami in Japan - has recalled 45,524 of it popular Accord Euro sedans after a fault was identified in the engine bay.
The recall notice said "prolonged high under-bonnet temperatures may cause the power steering hose to deteriorate prematurely" which could cause cracks and a leak from the hose.
"Power steering fluid could leak onto a hot exhaust and could produce smoke and a burning smell, with the potential for an under-bonnet fire," the notice said. Honda Australia national public relations manager Mark Higgins said the recall was effecting Australian-retailed vehicles, of which the company has sold more than 54,000 in the recall timeframe.
"There have been a couple of customers who have reported at a service that there's been a little bit of smoke in the engine bay that they have smelt and noticed, there have certainly been no fires - it's a simple replacement of a power steering hose to fix the problem," Mr Higgins said.
The recall covers the model line-up from 2003 until 2008. The Accord Euro recall is the company's fourth for 2011 - earlier this month the Civic Hybrid was recalled over a fuse short.
The City Sedan and Jazz Hatch were recalled in February over an engine stalling problem and the Jazzz hatchback was recalled in January for a headlight problem. Honda has closed all its production facilities but Mr Higgins said the Australian branch of the company had sufficient Japanese-sourced vehicle stock on the ground here and there were no parts shortages.
"There are no issues with replacement parts coming from Japan, the latest update on our situation is that production is closed until April 3 and there will be a decision made after that," he said.
Honda Australia said it was contacting effected owners by mail and was advising them to contact an authorised Honda Dealership to have the power steering feed hose replaced.