The European Parliament today approved new rules on circular vehicle design and end-of-life vehicle treatment, marking a significant step towards a more sustainable automotive sector. The regulation will require easier vehicle dismantling, higher recycled-plastic content, stricter controls on used vehicle exports and extended producer responsibility for manufacturers.
On Thursday (18th June), Parliament gave the green light to new EU rules on circular vehicle design and the disposal of end-of-life vehicles.
The agreement reached by Parliament and Council at the end of 2025 was adopted with 437 votes in favor, 112 against and 20 abstentions.
Sustainable design and use of recycled materials
According to the new regulations, all new vehicles must be designed in such a way that as many parts and components as possible can be easily removed.
The plastics used in every new vehicle type must consist of at least 15% recycled plastic within six years and at least 25% within ten years. At least 20% of this recycled plastic must come from materials recovered from end-of-life vehicles and used car parts (thus ensuring a “closed loop”). Following a review based on studies, the Commission will be able to introduce targets for other materials in the future. These include, for example, recycled steel, aluminum, magnesium, and critical raw materials.
Sale of used vehicles
When selling a used vehicle, businesses (unlike private individuals) must ensure that it is not an old vehicle or, alternatively, that it has a valid roadworthiness certificate. To avoid unnecessary burdens on citizens, transactions between private individuals only require one of these two documents if the vehicle is declared a total loss or if the sale is completed via an online platform.
Stricter measures for the end of a vehicle’s life
Three years after these new regulations come into force, extended producer responsibility will be introduced, meaning that manufacturers will have to bear the costs of collecting and disposing of end-of-life vehicles within the EU.
Stricter export regulations for used vehicles
To address the problem of missing vehicles and prevent their illegal disposal and dismantling, the law prohibits the export of vehicles that have been declared unroadworthy (applies five years after the regulation comes into force).
The rapporteurs Jens Gieseke (EPP, Germany) of the Committee on the Environment and Public Health and Paulius Saudargas (EPP, Lithuania) of the Committee on the Internal Market and Consumer Protection stated:
“We are taking important measures to advance the automotive industry’s transition to a circular economy. We are promoting resource security, protecting the environment and ensuring sustainability. To avoid overburdening the industry, the new rules include realistic targets, less bureaucracy and fairer competition.”
Next Steps
After Parliament has given its approval, the new regulation must now also be adopted by the Council before it enters into force 24 months later.
Background
On 13 July 2023, the Commission proposed a new regulation on requirements for the circular design of vehicles and on the disposal of end-of-life vehicles, in line with the objectives of the European Green Deal and the Curricular Economy Act.
In 2023, 14.8 million motor vehicles were manufactured in the EU, and 12.4 million were registered. There are 285.6 million motor vehicles on EU roads, and approximately 6.5 million reach the end of their service life each year.
Further Reading on Auto Recycling World
- Council And Parliament Strike Deal On Rules For Vehicle Circularity And Management Of ELVs
- Circular Economy: New EU Rules To Make The Automotive Sector More Sustainable
- The End-of-Life Vehicle Regulation Is In Its Final Approval Phase – What Next?
- Driving Plastics Full Circle: EU Roadmap For Car Recycling
