Launched on October 9, 1998 the PA1 Honda Z was manufactured for Honda by Yachiyo Industry Co, a Honda subsidiary manufacturing light trucks. The basic structure of the Z, including its midship-mounted engine placement and 4WD drivetrain was shared with its Honda Acty sibling. Unlike the Acty though, it was a four-seater passenger car which also meant that it had to pass passenger car safety standards. The 656 cc E07Z three-cylinder engine was available in a naturally aspirated as well as in a turbocharged variant.