EU Revamps Auto Sector Rules

In a significant move towards sustainable development, the European Parliament and Council have provisionally agreed on new regulations aimed at enhancing the circular economy within the automotive sector. Announced on December 12, 2025, these rules are designed to cover the entire lifecycle of vehicles, from design through to their end-of-life phase.

Under the new framework, all new vehicles in the EU will need to be designed to allow easy removal of parts and components, facilitating reuse and recycling. The regulations set ambitious targets, including a mandate that new vehicles must contain at least 15% recycled plastic within six years, and 25% within ten years of the rules coming into force. Additionally, recycled steel and aluminium targets will be established two years post-implementation, pending feasibility studies.

The agreement also introduces stricter end-of-life vehicle management protocols and reinforces producer responsibility, requiring manufacturers to bear the cost of collecting and treating vehicles at the end of their life from three years after the regulations are implemented. Moreover, to curb the illegal export and treatment of end-of-life vehicles, an export ban will be imposed on non-roadworthy vehicles five years following the rules’ enactment.

This legislative push aligns with the European Green Deal and the circular economy action plan, reflecting the EU’s commitment to environmental sustainability and resource security. The provisional agreement now awaits final approval from both the Parliament and the Council before it can be officially enacted. This development represents a crucial step in transitioning the automotive industry towards more sustainable practices, ensuring long-term environmental benefits and resource efficiency.