India's number one auto player, Maruti Suzuki is in deep trouble due to recalls of its mini car A-Star. The share price of the company reacted negatively to the news in the start of trading session. The stock touched an intraday low of Rs 1317. However, the stock managed to close 2.2 per cent higher at Rs 1365 after touching an intraday high of Rs 1388 on NSE.

The company announced to recall around 100,000 A-Stars due to fuel leakage problem in the hatchback. These recalled A-Stars belong to the batch which was produced till August 22, 2009. The company claims that it became aware of the defect while running its quality monitoring programme, which they carry at regular intervals.

The industry experts feel that the recall will not have a negative affect on the company in the long run. Vaishali Jaju, the Auto expert at Angel broking commented that the issue can hurt the company only if there are defects in other models and/or other components of the same model.

The recall also has a negative impact on the overall image of Japanese carmakers (Japan based Suzuki owns the major stake in Maruti Suzuki). Of late, another Japan based automobile company Honda has also recalled its Honda City models.