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Making Car Rules Simpler and Cheaper for Electric Vehicles
Published December 16, 2025
Goal: Simplify vehicle rules
The EU is passing a new rule that cuts a bunch of confusing car regulations, making it cheaper and easier for makers to build and sell electric vans and small cars while keeping safety and pollution standards the same.
What the problem is
The EU automotive industry is hit by a complex web of rules that add up to high administrative costs and slow the rollout of new vehicles.
- The automotive value chain is worth €589.3 billion and accounts for 3.7 % of EU GDP, supporting 10.6 million jobs.
- Industry estimates that up to 25 % of R&D costs for new models are spent on meeting regulatory requirements.
- Electric light commercial vehicles (e‑vans) that weigh more than 3.5 t are forced to carry tachographs and speed‑limit devices, making them less attractive to SMEs and hindering the shift to zero‑emission transport.
- The Euro 7 emission test regime contains redundant laboratory tests and unclear data‑processing rules, creating extra paperwork for manufacturers and authorities.
- Noise‑control regulation (Reg. 540/2014) is outdated and duplicates UN rules, causing market fragmentation.
- Small electric cars (M1 category, ≤ 4.2 m) are not singled out in the law, limiting incentives that could make them affordable.
How the problem is being solved
The Commission proposes a single regulation that amends four existing rules (Reg. 561/2006, 2018/858, 2019/2144, 2024/1257) and repeals two others (Reg. 540/2014 and Directive 70/157/EEC).
Key simplifications:
| Target | Change | Expected benefit |
|---|---|---|
| E‑vans (3.5–4.25 t) | Exempt from tachograph and speed‑limit device requirements when used only for domestic transport | Lower purchase and operating costs for SMEs; faster uptake of electric vans |
| Euro 7 testing | Remove the dedicated low‑temperature laboratory test; use the existing Real‑Driving‑Emissions (RDE) test instead | Cuts testing costs and administrative burden without harming environmental performance |
| Noise regulation | Repeal Reg. 540/2014 and replace it with UN regulations (51, 59, 138) | Harmonises noise rules, eliminates loopholes, and reduces duplication |
| Small electric cars | Create a new sub‑category “small electric vehicle” (M1 ≤ 4.2 m) and allow targeted CO₂ incentives | Encourages production and purchase of affordable electric cars |
| Digital data | Give the Commission power to set technical specs for on‑board monitoring (OBM) and fuel‑electric‑consumption monitoring (OBFCM) and to harmonise data handling | Reduces costs for manufacturers and authorities by avoiding multiple national systems |
The proposal also introduces a “single automotive compliance date” for new rules, giving manufacturers a clear timeline and reducing the need to track many different deadlines.
What changes as a result of this document
- Regulatory amendments – 4 existing regulations are amended; 2 are repealed.
- Repeal date – Reg. 540/2014 and Directive 70/157/EEC will cease to apply from 1 July 2027.
- Cost savings – The Commission estimates annual savings of €706 million for industry, consumers and public administrations.
- Implementation – The regulation will enter into force 20 days after publication in the Official Journal (expected 2026).
- Digital infrastructure – A harmonised EU‑level OBM/OBFCM data platform will be established, reducing duplication and lowering software‑integration costs.
Other important information
- The proposal is part of the EU’s “Simplification Agenda” and the “Industrial Action Plan for the Automotive Sector” (2025).
- It aligns with the Competitiveness Compass, the Clean Industrial Deal, and the “A simpler and faster Europe” communication.
- The changes do not lower safety or environmental standards; they simply remove unnecessary administrative layers.
- The proposal is based on Article 91 and 114 of the Treaty on the Functioning of the EU and respects the principle of subsidiarity.
- No additional budget is required; the Commission will use existing appropriations.
- Stakeholder consultation (68 replies from 130 participants) showed strong support for the measures.
- The regulation will be monitored and periodically evaluated for effectiveness, in line with better‑regulation principles.
This document therefore simplifies the technical and testing framework for motor vehicles, reduces costs for manufacturers and authorities, supports the transition to electric mobility, and harmonises data and noise rules across the EU.
Licensing: The summaries on this page are available under Creative Commons Attribution 4.0 (CC BY 4.0).
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