Auto Finance Regulation

New EU rules on end-of-life treatment of vehicle

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The EU has introduced new rules on the design, production, collection, and end-of-life treatment of vehicles, which include requiring use of more recycled plastic content in new vehicles and a greater responsibility for manufacturers in collecting and treating end-of-life vehicles.

The End-of-Life Vehicles Regulation introduces Europe’s first-ever mandatory targets for recycled plastic content in vehicles. From 2032 new vehicles will have to have recycled content of 15%, rising to 25% from 2036. In addition, the Commission will establish recycled content targets for steel and aluminium, which should apply from 2033.

The new rules are designed to encourage vehicle design that makes dismantling, reuse, recycling and recovery easier, while improving the information available on the removal and replacement of components during use and at the end of a vehicle’s life, as part of attempts to grow the circular economy.

Every year, 10 to 12 million vehicles in Europe reach the end of their life and are treated as waste. The EU argues that these end-of-life vehicles are a reliable source of valuable raw materials, so when they are not properly managed, they can cause environmental problems, and the European economy loses millions of tonnes of materials

Manufacturers will need to provide clear and detailed instructions for removing and replacing parts both during use and at end-of-life, ensuring easier dismantling of vehicles. The Regulation also strengthens Extended Producer Responsibility (EPR), ensuring that producers contribute to the costs of collecting and treating end-of-life vehicles.

In addition, the Regulation provides that from mid-2031, only roadworthy vehicles may be exported outside the EU. The intention here is to prevent cars considered waste from being sent to third countries as if they were second-hand.

Both the traceability requirements and the criteria that differentiate a used vehicle from one that has reached the end of its useful life will be tightened, in addition to strengthening controls to ensure uniform application across all member states.

Executive Vice-President for Prosperity and Industrial Strategy, Stéphane Séjourné, said: “The End-of-Life Vehicles Regulation is not just about waste, it is about resilience and Europe’s industrial future.

It helps cut our dependencies on external suppliers, strengthens Europe’s economic security and keeps strategic resources within the EU. That is not only good environmental policy – it is hard-headed industrial policy.