The European Union’s End-of-Life Vehicles (ELV) Directive is undergoing significant revisions that will reshape the use of plastics in automotive manufacturing. The directive will introduce recycled content requirements, restrictions on non-recyclable plastics, and an increased focus on producer responsibility. With plastics accounting for 15-20% of a vehicle’s weight, the directive will force automakers and suppliers to rethink their materials strategies, supply chains, and recycling partnerships.
Recent developments indicate that regulators recognize the significant challenges facing automakers in meeting these targets. Initial proposals set high recycled plastic content requirements, but policymakers have since acknowledged that the automotive supply chain lacks the infrastructure and material availability to meet these goals in the originally proposed timeframe. This acknowledgment has led to a softening of the transition timeline, but the fundamental shift toward greater recycled content and improved recyclability remains unchanged.
IDTechEx has identified in its latest market forecast that automotive manufacturers will struggle to meet the ELV Directive’s revised targets. The ability of automakers to comply with these new regulations will depend on supply chain collaboration, investment in recycling technologies, and regulatory flexibility in the coming years.
In “Sustainable Plastics for Automotive 2025-2035: Market, Players, and Forecasts“, IDTechEx provides an in-depth analysis of how regulatory pressures, such as the ELV Directive, will shape the market and drive material innovation and adoption strategies.
Key changes in the revised ELV Directive
- Mandatory Recycled Plastic Content – The initial proposal required at least 25% recycled plastic in new vehicles, with 25% of that derived from ELVs. However, following industry concerns about feasibility, the European Parliament has lowered the overall recycled plastic target to 20%, with 15% specifically from ELV-derived sources.
- Extended Producer Responsibility (EPR) – OEMs will bear greater financial responsibility for vehicle disposal and material recovery, ensuring more sustainable design choices and greater integration of recyclability at the design phase.
- Tighter Control of Vehicle Exports – Stricter tracking systems and bans on exporting non-roadworthy used vehicles aim to reduce waste exports and ensure materials are recovered within the EU.
- Inclusion of Additional Vehicle Types – The revised regulation expands coverage to motorcycles, lorries, and buses, requiring a broader range of automakers to comply with sustainability requirements.
IDTechEx forecast: Automakers will struggle to meet ELV compliance
IDTechEx has identified that automotive manufacturers will face significant challenges in meeting these revised ELV targets. According to IDTechEx’s latest market forecast, sustainable plastics content in vehicles is expected to reach 18% by 2035, with recycled plastics accounting for 15% and bio-based plastics making up the remaining 3%. While this marks substantial progress, it falls short of the ambitions set by many policymakers and automakers. This gap highlights the urgent need for stronger supply chain collaboration, infrastructure investments, and policy support.
Limited supply of recycled automotive plastics
One of the primary challenges in meeting End-of-Life Vehicle (ELV) targets is the limited availability of high-quality recycled plastics suitable for automotive applications. Automotive-grade recycled polypropylene (rPP), polyethylene (rPE), and polyamide (rPA) remain in short supply. At present, most plastics from scrapped vehicles are either downcycled into non-automotive applications or incinerated due to the lack of standardized collection and sorting systems. To overcome this challenge, OEMs and suppliers must collaborate closely with dismantlers and recyclers to improve the recovery and reintegration of end-of-life plastics into automotive production, ensuring a more circular and sustainable approach to vehicle materials.
High costs of recycled and bio-based materials
Despite regulatory mandates, the cost gap between virgin and sustainable plastics remains a significant barrier to wider adoption in automotive applications. Recycled plastics require extensive processing, including sorting, decontamination, and reprocessing, which adds to their overall cost. Chemical recycling, which has the potential to deliver chemically identical polymers, is expensive and energy-intensive, limiting its commercial scalability. Similarly, bio-based plastics face challenges related to feedstock availability and higher production costs compared to conventional petrochemical-based alternatives. Additionally, fluctuations in oil prices directly impact the cost competitiveness of virgin plastics, making recycled and bio-based alternatives less viable when oil prices are low. To stabilize pricing and ensure a reliable supply, OEMs and tier-one suppliers must establish long-term agreements with recyclers and invest in closed-loop systems that secure material availability at predictable costs.
Need for stronger collaboration across the supply chain
Achieving End-of-Life Vehicle (ELV) compliance will require stronger collaboration between automakers, dismantlers, material suppliers, and policymakers to enhance the circularity of automotive plastics. Dismantlers must adopt advanced sorting technologies to recover higher-quality plastics from scrapped vehicles. At the design stage, OEMs must prioritize recyclability by reducing the use of mixed-material components that are difficult to process at end-of-life. Meanwhile, polymer manufacturers and recyclers need to develop improved formulations that enable recycled and bio-based plastics to meet stringent automotive performance standards. Some automakers and suppliers are already making progress in this area, Nissan and BMW have incorporated recycled content into vehicle interiors and structural components, while Stellantis and Renault are expanding closed-loop plastic recovery programs in partnership with recyclers and dismantlers. Additionally, leading material suppliers such as BASF and Covestro are investing in next-generation sustainable polymers to support the growing demand for high-performance, recycled, and bio-based plastics in the automotive sector.
IDTechEx market insights on sustainable automotive plastics
IDTechEx’s latest report, “Sustainable Plastics for Automotive 2025-2035: Market, Players, and Forecasts“, provides an in-depth analysis of sustainable plastic adoption in passenger vehicles. The report explores the entire circular economy of automotive polymers, including:
- Mechanically and chemically recycled plastics
- Bioplastics and bio-composites
- Sustainable upholstery materials
- Innovations in sustainable tire technology
For more information on this report, including downloadable sample pages, please visit www.IDTechEx.com/SustainablePlastics.
