Roof 'mood lighting' looks to have triggered a big Volkswagen recall, according to media reports from Germany.

The automaker will recall about 700,000 Tiguan and Touran cars worldwide due to a possible lighting defect, Reuters reported, citing German trade magazine Kfz-Betrieb.

The magazine reported that humidity can cause a short circuit at the panoramic roof's light strip in the affected cars. A short circuit in the LED-module could cause scorching damage on the roof and possibly set the vehicle on fire, the magazine said, citing a company spokesman.

In Germany itself, about 52,500 cars are affected, Reuters said.

The company is currently working on a solution, the magazine added, quoting the spokesman.

VW was not immediately available to Reuters for comment.

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