Honda F1 boss Yusuke Hasegawa says a reduction in permitted power unit elements by the FIA in 2018 will increase costs for F1 manufacturers.
The amount of power unit elements which teams are allowed to use in a season is currently set at four, but the governing body plans on reducing the number to three in its bid to contain costs.
Hasegawa argues however that a decrease in authorized engine components will actually lead manufacturers to increase their investment in research and development in order to reach the required level of reliability.
McLaren-Honda blew through its limited component usage early on in the season and has been tacking on grid penalties as a result at almost every race.
The Japanese manufacturers switches to Toro Rosso next year following the premature end to its partnership with the Woking-based outfit, and Hasegawa is predicting more difficult times ahead with a reduced pool of engine elements.
"It is a very difficult challenge," Hasegawa said.
"Of course for Honda and some of the manufacturers three engines is very difficult.
"Three engines is not making a cost reduction, so the teams are always encouraged to improve the performance of the three engines, so that’s why we have to put more budget for that.
"If the FIA is aiming to reduce budget with the three engines it is completely the opposite side."
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