Honda, after establishing itself as a leading manufacturer of motorcycles during the 1950s, began production of cars in 1963.[8] Honda introduced its N360 minicar, compliant with Kei car specifications for the Japanese market, for the 1967 model year. The car had a transverse-mounted front engine, front-wheel drive (FF) layout, which would be adopted for the later N600 (1969), H1300 (1970) and Civic (1972) models.[9] Occupying a size niche between minicars and compact sedans, the Civic offered a combination of economy and practicality with its space-efficient design that had immediate appeal. The Civic gave Honda their first market success competing with manufacturers of standard compact cars, which were the growth segment as sales of minicars plateaued and waned in the early 1970s, and their first major impact in the export market.[10] Honda's CVCC engine technology, which had been under development since 1970, was added to the Civic in December 1973. It had the advantages of not requiring a catalytic converter or unleaded fuel to meet the emissions requirements of the 1970s and early 1980s.[11]

After the well-received launch of the Civic, Honda started on the development of a larger companion model. Honda's original concept for a larger, quieter, more powerful and comfortable car was a four-door sedan powered by a 2000cc inline-six engine, designated Project 653.[12] Information on that project has been interpreted as designating a V6 powered competitor to the Ford Mustang,[13] however that appears to be a confused interpretation of the Project 653 design concept. For reasons including managing development costs, leveraging the technology of their Civic, and ability to adapt production facilities to the new model, Honda changed their focus to building upon the Civic's successful formula in a larger package, designated Project 671.[12] The body design of the new model was finalised in the fall of 1973, as reported in the December 1975 issue of Motor Trend magazine,[14] which suggests that work under Project 671 had been advancing in the months prior. However, one account of the timeline reports that mechanical engineering under Project 671 got underway in 1974.[12] Until production of the new model, intensive engineering efforts were carried out to make the CVCC engine quieter and more suited to higher cruising speeds, to refine the suspension for better ride and handling, to develop a power steering system suitable for a lightweight compact car, and to improve noise damping in the body and frame. Extensive pre-production testing was performed under a wide variety of conditions, to assure the Accord's suitability for the varied uses an export model would be subjected to.[12]

For the new model, Honda chose the name "Accord", reflecting "Honda's desire for accord and harmony between people, society and the automobile."[15] German manufacturer Opel unsuccessfully sued Honda, claiming that the name was too similar to their Rekord.[16]

The Accord's final form, with an extended nose and extended coupe cabin with a sloping hatchback rear, was a logical derivation of the stubby hatchback design of the Civic and it provided ample leeway for use of Civic-derived components. It showed similarity to the Volkswagen Scirocco, which had been introduced in January 1974, leading to speculation that the form of the Accord was copied from the Scirocco. However, the Accord's form had been finalised months prior to the Scirocco's introduction.