Honda Motor says it will raise wages for its factory workers in the United States by 11 percent from January.
The announcement follows decisions by the "Big Three" automakers to increase pay after United Auto Workers union members went on strike for six weeks.
General Motors, Ford and Chrysler parent, Stellantis, reached a tentative agreement with the UAW late last month on a wage hike amounting to 25 percent over four-and-a-half years. Honda's decision is seen as an attempt to retain workers with better pay.
Media reports say Toyota Motor has also decided to raise wages for workers at its US plants.