The S500 was the second production car from Honda, released in 1963, following the T360 truck into production by four months. It was a larger displacement variant of the S360 roadster which, though developed for sale in 1962, was never produced. At the time of its introduction, its dimensions and engine displacement were larger than established Kei car regulations. The S500 used a four-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.