Several teams have approached Honda about a partnership when Formula One's new engine era starts in 2026 but no decision has been taken about future involvement, the Japanese manufacturer said on Monday.
"For the time being we would like to keep a close eye on where Formula One is going and just see how things go," he added.
Watanabe said Formula One's future direction was in line with Honda's own target of carbon neutrality and increased electrification. Tetsushi Kakuda, Honda's F1 project leader and executive chief engineer, told reporters the company had worked to address reliability issues for 2023.
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