Press release - New rules for a more sustainable EU automotive sector

New rules for a more sustainable EU automotive sector - New vehicles to be designed to maximise re-use, recycling and recovery - Binding targets for the use of recycled materials in new vehicles - Non-roadworthy vehicles can no longer be exported - Of 285.6 million motor vehicles on EU roads, 6.5 million reach their end of life every year On Thursday, Parliament gave its final approval of new EU circularity rules covering a vehicle’s entire lifecycle, from design to end-of-life treatment. The agreement reached by Parliament and Council at the end of 2025 was adopted with 437 votes in favour, 112 against and 20 abstentions. Circular design and use of recycled materials According to the new rules, all new vehicles must be designed so as to allow the easy removal of as many parts and components as possible. Plastics used in each new vehicle type will have to contain a minimum of 15% recycled plastic within six years and 25% within ten years. A minimum of 20% of this recycled plastic must come from materials recovered from end-of-life vehicles (ELVs) or used parts (the so-called "closed loop"). Based on feasibility studies, the Commission will be able to introduce targets for other materials in the future, such as recycled steel, aluminium, magnesium and critical raw materials. Transfer of ownership of used vehicles within the EU When selling a used vehicle, businesses (as opposed to private citizens) will be required an assessment that it is not an ELV or alternatively has a valid roadworthiness certificate. To avoid imposing unnecessary burdens on citizens, transactions between private persons will only require one of these two documents if the vehicle is declared a total economic loss or if the sale is concluded exclusively via an online platform. Stricter measures for end-of-life management Three years after the entry into force of these new rules, extended producer responsibility will be introduced for manufacturers, i.e., they will have to cover the cost of the collection and treatment of vehicles that have reached their end-of-life stage anywhere in the EU. Strengthening export rules for used vehicles To address the issue of “missing vehicles” and prevent illegal treatment and dismantling, the law bans the export of vehicles declared non-roadworthy (applicable five years after the entry into force of the regulation). Quote Co-rapporteurs Jens Gieseke (EPP, DE), of the Environment committee, and Paulius Saudargas (EPP, LT), of the Internal Market Committee, said: "We are taking important steps to boost the automotive sector’s transition to a circular economy. We are advancing resource security, protecting the environment, and ensuring sustainability. To avoid overburdening the sector, the new rules will introduce realistic targets, less red tape and fairer competition." Next steps After Parliament’s green light, the new regulation has to be formally approved by the Council, before entering into force and being applied 24 months later. Background On 13 July 2023, the Commission proposed a new regulation on circularity requirements for vehicle design and improved management of end-of-life vehicles, in line with the objectives of the European Green Deal and the circular economy action plan. In 2023, 14.8 million motor vehicles were manufactured in the EU, while 12.4 million vehicles were registered. There are 285.6 million motor vehicles on EU roads and every year around 6.5 million vehicles come to the end of their lives.