As with all cars in the kei class, the Z360's specifications were tightly governed. The Z360 originally featured an air-cooled, 354 cc, two-cylinder SOHC engine with a four- or five-speed transmission driving the front wheels. Outputs were at 8,500 rpm for the Act and Pro versions, and at 9,000 rpm for the sportier TS and GS models. The Z600 model's 598 cc SOHC engine was rated at . In December 1971, the Z360 received a facelift and a water-cooled engine, it also produced at 9,000 rpm. Only a month later, the 31 PS engine used in the lower spec variants (Standard, Deluxe, Automatic, Custom) also became water-cooled. The engine's technical achievements reflected influences from Honda's larger, 1.3 L, air-cooled four-cylinder used in the Honda 1300 coupe and sedan.