A few things perfectly encapsulate the all-American feeling. Friday night football under the lights, a sizzling backyard barbecue on the Fourth of July, a classic muscle car roaring down Route 66, and the electrifying roar of stock cars thundering around Daytona. NASCAR, deeply embedded in this cultural fabric, has long been an all-American battleground.

From the golden era of Chrysler, Dodge, and Pontiac to the enduring legacies of Chevrolet and Ford, NASCAR’s history has been deeply rooted in American automotive engineering. To date, all but Toyota have been American-owned companies, making the grid a showcase of homegrown competition. But as the sport evolves, so does its need for fresh contenders. With speculation growing around a potential fourth OEM, all signs point to a brand that has already left its mark on global motorsports.

Could Honda be the next name to shake up the NASCAR landscape?

Honda’s NASCAR gamble – Steve Phelps Hints at a game-changing entry

Honda’s long-standing relationship with IndyCar appears to be nearing its end. NASCAR might be the next destination for the Japanese automaker. In a recent interview, NASCAR President Steve Phelps reiterated the sport’s push to bring in a fourth and possibly a fifth OEM, saying, “We’re in some discussions. It’s a lot of work… but it’s really more about getting it done.” His comments have reignited speculation that Honda could be the newest addition to NASCAR’s manufacturer lineup.

Honda has powered IndyCar teams since 1994, but mounting financial concerns may force a change in direction. The automaker supplies nearly half the 27-car grid, including 16–18 entries in the Indianapolis 500, making it a dominant force in open-wheel racing. However, maintaining this presence comes at a high cost, with yearly expenses reaching eight figures.

Without a clear plan to reduce costs, Honda’s departure from IndyCar seems increasingly likely. RACER journalists recently noted that “Honda is nine toes out the door,” once its engine contract expires in 2026. This is despite IndyCar owner Roger Penske’s efforts to convince them to stay. If Honda exits IndyCar, its transition to NASCAR would be a seismic shift in American motorsports.

The move would bring a new level of competition to the Cup Series. Additionally, it will provide NASCAR teams with additional funding and sponsorship opportunities. Phelps emphasized the benefits of a new OEM. He stated, “They’ll come and advertise… talk about their brands… and promote drivers,” reinforcing the positive impact a Honda entry could have. Penske, however, is reportedly unhappy with the situation, as losing Honda would weaken IndyCar’s competitive structure. But, we know one legend who will be happy if Honda comes to NASCAR. You guessed it right! That’s our very own Daytona 500 podium finish of 2025, Jimmie Johnson. But, what about Penske?

While he remains hopeful of retaining the manufacturer, the growing ties between NASCAR and Honda suggest otherwise. NASCAR COO Steve O’Donnell previously stated that talks were “heating up” with a potential new OEM, fueling further speculation. With Honda seemingly exploring all its motorsport options in the U.S., a shift to NASCAR appears to be a calculated decision. The move would diversify the automaker’s racing portfolio. It will also align it with a sport known for its massive fan base and sponsorship appeal.

While nothing is official yet, all signs point toward an impending shake-up in the world of stock car racing.

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A financially-calculated move? Honda’s NASCAR shift explained.

As discussed earlier, Honda is facing a financial strain in IndyCar. The high costs of supplying engines and supporting multiple teams are stretching its resources. The shift to NASCAR could present a financially viable alternative. But, most importantly, it can also provide a stronger return on investment. This will be through greater brand exposure and fan engagement as highlighted by a Cambridge study.

As per The NASCAR Phenomenon: Auto Racing Sponsorships and Shareholder Wealth study, NASCAR sponsorship announcements have historically resulted in significant increases in shareholder wealth for sponsoring firms (including OEMs). It averages over $300 million. This finding underscores the strong market endorsement of NASCAR sponsorships. The study suggests that partnerships with successful racing teams enhance perceived sponsorship success, aligning with the well-known adage, “Win on Sunday, sell on Monday”  from the 1960s and 70s.

Beyond the numbers, Honda’s participation in NASCAR could strengthen its connection with American consumers. NASCAR’s large and loyal fanbase offers a unique marketing advantage that IndyCar lacks. While IndyCar caters to a niche audience, NASCAR’s widespread appeal aligns well with Honda’s broader business goals in the U.S. automotive market.

While talking to Adam Stern, Steve Phelps also stated that NASCAR has been in discussions with multiple manufacturers about entering the Cup Series. NASCAR President Steve Phelps also reaffirmed the organization’s efforts to introduce a fifth OEM. He explained that the sport is actively seeking to expand its manufacturer lineup.

With NASCAR’s leadership keen on attracting new brands and Honda re-evaluating its future in IndyCar, could this be the perfect moment for the Japanese automaker to make a historic shift into stock car racing?