TOKYO -- Honda will continue to supply engines to two Formula One racing teams as its contracts with them will be renewed after they expire next year, Nikkei learned on Wednesday.

The Japanese automaker has been supplying power units to cars competing in the championships since 2015. Its current contracts are with England’s Red Bull Racing and Italy's Scuderia Toro Rosso. These contracts will be renewed for the 2021 season after they expire next year.

Honda's engines have performed well in the 2019 racing season. Honda won the Austrian Grand Prix in June for the first time in 13 years thanks to the improved performance of its engines. Red Bull driver Max Verstappen clocked three wins including the German Grand Prix in July and the Brazilian Grand Prix in November.

There had been resistance within the company over its participation in the forthcoming seasons due to heavy costs involved in the development of these high-performance engines at a time when Honda is facing intense competition in the passenger car market. Automakers are also having to invest heavily in next-generation vehicles, which also weighs on profit.