Honda's future in F1 beyond 2020 will depend on whether the Japanese manufacturer can rein in the cost of its engine programme while maintaining its development and level of performance.
After a dismal period of under-performance since its return to F1 in 2015, Honda has finally started to reap the dividends of its efforts, clinching three wins so far this season with partner Red Bull Racing.
Honda's success is tangible evidence that the engine supplier is near or on the level of its Ferrari and Mercedes rivals.
But while winning is obviously a priority for the company, it cannot be achieved each year with a blank check insists Honda F1 boss Masashi Yamamoto.
"We have started to calculate how much it will cost with the future regulations," Honda's F1 managing director Masashi Yamamoto told Motorsport.com.
"We have noticed that it's very tough for all the car manufacturers at the moment, because of the environment change for electrification.
"So, we are summing up the development cost and having discussions internally."
Yamamoto hints that F1, in its future 2020 guise, will need to be cost effective for Honda to remain involved, meaning the company will need to sustain its quest for success while spending less.
"It's positive to have good results," added Yamamoto. "But more important thing is a balance with the cost. We have to put lots of budget to accelerate our development to catch up the top runners.
"And now we are planning how to maintain current condition and reducing the cost at the same time."
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