
Like the S360, the S500 used a high-tech engine developed from Honda's motorcycle expertise. It was a dual overhead cam straight-4 with four carburettors and a 9500 rpm redline. Originally intended to displace 492 cc, the production version was 531 cc and produced 44 hp at 8000 rpm.
The S500 used a 4-speed manual transmission with chain drive at the rear wheels. A four-wheel independent suspension was also novel, with torsion bars in front and diagonal coilover shock absorbers at the rear.