Honda reveals key criteria for IndyCar contract renewal after 2026

Honda Racing Corporation Vice President Kelvin Fu has highlighted the key criteria Honda will take into account when evaluating a contract renewal with IndyCar post-2026. The Japanese manufacturer is one of two engine manufacturers in the American racing series, alongside Chevrolet.

2026 is the final year of Honda's current contract with IndyCar, and its future beyond that is uncertain. In December 2023, American Honda Motorsports Executive Chuck Schifsky expressed concern about rising costs in the series and the diminishing return on investment.

Honda found some solace in 2024, as the Roger Penske-owned series accepted its push for hybrid engines. However, the cost of the new hybrid PUs and their supporting components adds to the teams' costs, creating a separate issue.

HRC VP Kelvin Fu recently addressed their stance on continuing as a manufacturer in IndyCar post-2026. Though he shared that there was "nothing new to report" on this front, Fu did list the criteria that HRC takes into account for evaluating such a decision.

"From an HRC perspective, we are looking at where can we have technical development? Where can we win using technical development? Where is there a chance that our people can be developed? But also where does the future of the sport go, and does it match what American Honda is gonna go in the future?" he said via RACER on YouTube. [4:49:10 onwards]

Fu elaborated on the strategic outlook and business expectations that Honda looks at, adding:

"So, you know, they are looking at what's the viewership? Can I reach enough people? Does the message of the series meet what Honda's trying to talk about in the future? We're talking about the power of dreams, we talk about Halo. Is that gonna give the right glow to the brand? Where do they race, and can I activate there, and does it match where the dealer network is? Does it match where Honda sales are, weak or strong, so I can push messaging in those different areas?"

Honda President reflects on record-breaking 2025 IndyCar season led by Alex Palou

Alex Palou with the 2025 IndyCar championship trophy at the Borchetta Bourbon Music City Grand Prix - Source: Getty

Honda has been associated with IndyCar for over 30 years, but had never crushed its rival manufacturer(s) as it did in 2025. Alex Palou dominated the 27-driver grid like never before, with eight wins in 17 races, including his first Indy 500 triumph.

Honda-powered cars won 10 races in a row before Arrow McLaren's Pato O'Ward gave Chevrolet its first victory of the season in Round 11 at the Iowa Speedway. During the manufacturer's championship press conference amid the Milwaukee Mile race weekend, HRC US president David Salters spoke about this dream run.

"What an amazing season," Salters said via RACER. "The men and women of HRC US dug super deep in the offseason and have been rewarded by a clean sweep of the Indy 500, manufacturers’ championship, and drivers’ championship. What a season – stunning and record-setting so many ways. I’m so proud of our team."

Alex Palou won the drivers' championship at the Portland GP with two races remaining in the season. It was a picture-perfect season for Honda. Combined with a 27% rise in viewership for IndyCar, it might play into their plans to continue competing in the series.