The S500 followed the T360 into production in October of 1963, earning itself the title of the first production Honda car. Initially introduced with a 492cc engine, the specifications read like those from a Formula 1 race car; double overhead camshafts, four carburetors, a needle roller bearing crankshaft, and a 9,500 rpm redline. The car produced 44 horsepower at 8,000 rpm from its later, production displacement of 531cc, weighed approximately 1,500 pounds, and could achieve a top speed of 80 miles per hour.

A four speed transmission (with synchromesh on the top three gears) was utilized. Final drive was by oil bath chains to the rear wheels. Four wheel independent suspension was achieved using torsion bars in the front, and diagonally attaching coil-over-shock strut units to the rear of each chain case.

Brand new, it sold for the equivalent of $1,275. A fiberglass hardtop was offered as an optional accessory. There were 1,363 S500s produced between October 1963 and September 1964 (136 in 1963, and 1,227 in 1964), when it was supplanted by the larger-engined S600.