EU Formally Adopts End-of-Life Vehicles Regulation: What It Means for the Automotive Supply Chain

On 29 June 2026, the Council of the EU formally adopted the new regulation on circularity requirements for vehicle design and end-of-life vehicle management. This marks the final step of the legislative process and the regulation will start applying two years after its entry into force.

Full requirements apply to passenger cars and light commercial vans, while heavy-duty vehicles, motorcycles and special purpose vehicles face a more limited set of rules focused on proper end-of-life treatment. The scope is expected to be gradually extended to further vehicle categories over time.

From the design stage, new vehicles must be built to be easily dismantled and must meet reusability, recyclability and recoverability targets. A new vehicle circularity passport will document materials and components throughout each vehicle's life. On recycled content, at least 15% of plastic used in new vehicles must come from recycling within 6 years of entry into force, rising to 25% within 10 years, with at least 20% of that recycled plastic sourced specifically from end-of-life vehicles. Within two years of entry into force, targets for recycled steel and aluminium will also be introduced, with further work on critical raw materials to follow.

Producers become financially and organisationally responsible for the entire vehicle lifecycle, including free take-back and proper treatment at end of life. These extended producer responsibility obligations apply across all Member States where a vehicle ends its life, regardless of where it was originally sold. The regulation also creates incentives for the reuse of spare parts and the sale of remanufactured components, such as turbochargers, starters and alternators restored to full working condition.

To tackle the long-standing problem of vehicles that are illegally dismantled or exported, the regulation introduces traceability and control measures. Once a vehicle is classified as end-of-life waste, it must be handled by an authorised facility and cannot be legally exported or resold as a used vehicle. Member States must develop targeted inspection strategies to detect illegal activity across the ELV chain. The export of used vehicles that are no longer roadworthy is banned outright, taking effect five years after entry into force, preventing pollution in third countries and keeping valuable materials within the EU.

Source: Council of the EU Press Release, 29 June 2026