(In July 9 story, corrects paragraphs 1 and 2 to clarify comments about Honda sales and overall Chinese auto market)
* Still sees fiscal year sales higher than last year
* Younger buyers still a source of growth - CEO
By Minami Funakoshi
TOKYO, July 9 (Reuters) - Honda Motor Co's chief executive expects the automaker to record higher sales in China this fiscal year, even as overall vehicle sales in the world's biggest auto market weaken amid a slowing economy and the recent stock market turmoil.
Newly appointed CEO Takahiro Hachigo told reporters on Thursday the increase is likely to come from younger Chinese buyers, whose demand for cars is still growing.
"Recently stocks in Shanghai have basically plummeted ... sales also seem to be declining slightly," Hachigo said, referring to the overall auto market in China.
"For Honda, I think this year's car sales will top last year's," he added, saying the Chinese auto market, the world's biggest, still has potential to grow further.
As fears for the health of the world's second-biggest economy have grown, Chinese stocks have tumbled as much as 30 percent since mid-June, also dragging Japanese share prices to three-month lows on Thursday.
On Thursday Honda also expanded a recall to replace potentially deadly airbag inflators made and supplied by Takata Corp, calling back 1.63 million more cars in Japan. Honda will continue to investigate the issue with Takata and work as a business partner with the supplier, though it has no plans to provide financial aid, Hachigo said. (Editing by Kenneth Maxwell and Miral Fahmy)