New EU vehicle rules could have implications for Malta’s growing car sector

The European Parliament has given its final approval to a major overhaul of the rules governing vehicles throughout their lifecycle, introducing new requirements aimed at boosting recycling, reducing waste and promoting a more circular economy across the European Union.

The legislation, adopted with a large majority will affect everything from how vehicles are designed and manufactured to how they are dismantled and recycled at the end of their useful life.

Under the new rules, vehicle manufacturers will be required to design cars in a way that facilitates the removal of parts and components, making repairs, reuse and recycling easier. The legislation also introduces targets for the use of recycled plastics in new vehicles, requiring at least 15% recycled plastic content within six years and 25% within ten years. Part of this material must originate from end-of-life vehicles, creating a closed-loop recycling system.

While the measures apply across the EU, they may be particularly relevant for Malta, where car ownership remains among the highest in Europe and the number of registered vehicles continues to grow each year. Malta had 457,403 licensed motor vehicles at the end of December 2025, an increase of 3,265 over the previous quarter. Of these, 73.4% were passenger cars, meaning there were approximately 336,000 cars on Malta’s roads.

The new framework places greater emphasis on recovering valuable materials from these vehicles and returning them to the production cycle rather than treating them as waste. The legislation also introduces extended producer responsibility, requiring manufacturers to cover the costs associated with collecting and treating end-of-life vehicles throughout the EU three years after the rules enter into force. The measure is intended to shift part of the financial burden away from public authorities and encourage manufacturers to produce vehicles that are easier to recycle.

Changes are also being introduced for the sale of used vehicles. Businesses selling second-hand vehicles will be required to demonstrate that a vehicle is not classified as an end-of-life vehicle or provide a valid roadworthiness certificate. Private sales will generally be exempt unless the vehicle has been declared a total economic loss or the transaction takes place exclusively through an online platform.

For Malta, where imported second-hand vehicles account for a substantial share of new registrations, the tighter rules could result in greater scrutiny of vehicle condition and documentation throughout the supply chain. Although the legislation is intended to reduce waste, improve resource efficiency and strengthen Europe’s circular economy objectives, critics, have warned that the new obligations could increase compliance costs for manufacturers and businesses operating within the automotive sector.