EUROPEAN COMMISSION

Strasbourg, 16.12.2025

COM(2025) 993 final

2025/0422(COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

amending Regulations (EC) No 561/2006, (EU) 2018/858, (EU) 2019/2144 and (EU) 2024/1257 of the European Parliament and of the Council as regards the simplification of technical requirements and testing procedures for motor vehicles and repealing Council Directive 70/157/EEC and Regulation No 540/2014 of the European Parliament and of the Council

{SWD(2025) 1056 final}

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

The automotive value chain is a pillar of the EU economy, accounting for EUR 589.3 billion euro and 3.7% of total value added of Europe’s GDP ,and direct employment of 10.6 million Europeans 1 .

In an increasingly unpredictable trade environment, maintaining a robust and competitive automotive industry is essential for safeguarding the EU’s strategic autonomy and global economic standing.

The analysis provided by the recent high-level reports of Enrico Letta and Mario Draghi 2 puts the reduction of regulatory burdens and the simplification of EU legislation among the top priorities. While the existing regulatory framework brings predictability and helps to achieve our shared public policy objectives, it should, however, not put undue burden and costs on industry. Representatives from the EU’s automotive industry have recently highlighted that a high number of legislations 3 must be complied with by European vehicle manufacturers between now and 2030, resulting in up to 25% research & development costs in certain cases 4 .

In her political guidelines for the European Commission’s 2024–2029 5 , President von der Leyen outlined a vision focused on sustainable prosperity and strengthening competitiveness across Europe, emphasising the need to make doing business faster and easier. This has been further outlined with the adoption of the Competitiveness Compass in January 2025 6 , followed by the Clean Industrial Deal in February 2025 7 and the “A simpler and faster Europe” Communication on implementation and simplification 8 . A streamlined regulatory framework with reduced administrative burden was mentioned as one of the fundamental pillars of this new competitiveness roadmap.

In line with this simplification agenda, the Industrial action plan for the European automotive sector 9 , adopted in March 2025, stated that the Commission, in consultation with stakeholders, would develop a regulatory simplification package for the automotive industry, by improving coherence and consistency between different regulatory requirements. Furthermore, it also announced the Commission’s intention to give, when making new legislative proposals, sufficient lead time for the industry to reflect these new regulatory requirements for motor vehicles in the product development process. This simplification agenda is particularly important in light of the growing complexity of vehicle developments and architectures, including software, AI models, and increasing autonomy.

Following the aforementioned commitments, the automotive omnibus will simplify and streamline certain provisions and procedures of the following acts to achieve the following specific objectives:

–Removing regulatory obstacles for the uptake of electric light commercial vehicles

Electric light commercial vehicles are heavier as the result of the weight of their battery. While they have the same payload and use cases as a light commercial vehicle with an internal combustion engine with a maximum permissible mass below 3.5 tonnes, they fall within the scope of the rules on driving times and rest rules which require the installation and use of the tachograph for commercial vehicles with a maximum permissible mass exceeding 3.5 tonnes as well as the requirement to be equipped with speed limitation devices. These requirements make such electric light electric vehicles with a mass exceeding 3.5 tonnes less attractive to customers, many of whom are SMEs and microenterprises, due to the costs involved in installing and using a tachograph 10 and speed limitation device. Such additional burden hampers the uptake of electric vans compared to similar combustion engine vans, which can therefore also result in increased difficulty for vehicle manufacturers to reach CO2 performance targets for light commercial vehicles.

This issue has also been recognised and taken into account in the recent revision of the EU Driving Licence Directive 11 , whereby a category B licence will be valid, two years after it was issued for the first time, for vehicles with a maximum authorised mass exceeding 3.5 tonnes but not exceeding 4.25 tonnes.

Regulation (EC) No 561/2006 12 : This Regulation lays down rules on driving times, breaks and rest periods for drivers of vehicles engaged in the carriage by road of goods, as well as drivers engaged in the carriage by road of passengers, with an aim to ensure fair competition among road transport operators, to improve working conditions of drivers, and to contribute to road safety. The main device used to control driving times and rest periods is the tachograph. The installation, construction and use of the tachograph is regulated by Regulation (EU) No 165/2014 13 .

 Regulation (EC) No 2019/2144 14 : also known as the General Safety Regulation (GSR), this Regulation lays down EU vehicle safety requirements for vehicle type-approval, including those addressing the specific concerns of vulnerable road users, such as pedestrians and cyclists. It also includes the requirement for N2 vehicles 15  to be equipped with speed limitation devices. 

–Reducing the adjustment costs related to Euro 7 emission tests

The Euro 7 Regulation (EU) 2024/1257 16 sets out in Article 14(7) that the methods for measuring pollutant emissions shall reflect those laid down in Regulation (EU) 2017/1151 17 (i.e., Euro 6). However, while in Euro 6 specific – significantly higher - emission limits were laid down for a laboratory test at low temperature, the Euro 7 Regulation does not contain dedicated emission limits for that specific test procedure. The requirement to comply with the general emission limits under such a laboratory test at low temperature goes against the intention of Article 14(7) and would increase the regulatory burden for vehicle manufacturers as well as for national type-approval authorities without any benefits for environmental performance.

Moreover, Annex V of the Euro 7 Regulation requires for the type-approval of heavy-duty vehicle engines tests per vehicle type. This requirement will introduce unnecessary administrative and regulatory burden by multiplying tests without providing additional environmental benefits. This is not aligned with the intention of the co-legislators to strengthen emission limits for heavy-duty vehicles while retaining the established test methods of the Euro 6 Regulation.

Lastly, the Euro 7 Regulation is not specific about the methods to process data received from on-board monitoring (OBM) systems and on-board fuel and electric energy consumption monitoring (OBFCM) devices present in Euro 7 vehicles, which could lead to dis-harmonised, inefficient approaches that would increase costs on vehicle manufacturers and authorities.

Regulation (EC) No 2024/1257: also known as Euro 7, this Regulation covers the type-approval of vehicles, engines, and related systems and components with respect to their emissions and battery durability. It also introduces measures for on-board monitoring of emissions, battery performance, and emission performance throughout a vehicle's lifetime.

–Improving coherence and avoid market fragmentation (noise; vehicle interoperability with charging infrastructure and grid)

Regulation (EC) No 540/2014 18 sets mandatory noise limit values for different vehicle categories and the development of acoustic vehicle alerting systems (AVAS) for electric vehicles. At the same time, the EU motor vehicle type-approval regulation recognises compliance with UN Regulations on noise and AVAS as alternative. As Regulation (EC) No 540/2014 does not include a mechanism to update the requirements in line with UN developments, this has created a parallel set of rules to obtain motor vehicle type-approval with potential loopholes and inconsistencies for the automotive industry, national type-approval and market surveillance authorities.

Regulation (EC) No 540/2014: Regulation (EC) No 540/2014 aims to reduce major sources of noise caused by motor vehicles. The regulation sets noise-limit values for the different vehicle categories, it lays out rules on labelling and consumer information, and the development of acoustic vehicle alerting systems (AVAS) for electric vehicles. 

As battery electric vehicle’s technology is evolving at a fast pace and the penetration of electric vehicles on the market is increasing, interoperability between vehicles, the charging infrastructure and the electricity grid is becoming increasingly critical. A harmonised approach to interoperability - at EU level – is essential to avoid fragmentation of certain technical requirements which are currently being developed outside of the vehicle type-approval framework, notably as regards the implementation of the revised Network Codes (DDC 2.0 - Regulation (EU) 2016/1388 19 and RfG 2.0 Regulation (EU) 2016/631 20 ). Therefore, to ensure battery electric vehicles’ harmonised capabilities and enable interoperable vehicle-to-grid (V2G) services, these vehicles will need to meet certain technical requirements. For these reasons an empowerment to the Commission should be established within the Regulation (EU) 2018/858 21 .

–Accelerating the uptake of small affordable electric vehicles

There is currently a lack of small affordable electric vehicles on the European market. The A- and B-segments have lost a combined 1.6 million in sales volume compared to 2019, and in 2024 70% of new BEV sales were large cars (E- and F-segment) and SUVs 22 . This comes along with a general trend of rising prices of vehicles across the EU, putting access to individual vehicle ownership progressively out of reach for many middle-class households. Therefore, in September 2025, the Commission President announced a small affordable car initiative aimed to incentivise the market for small electric vehicles. This will require targeted regulatory measures. The Commission will endeavour to freeze new requirements for 10 years and propose targeted incentives in the CO2 vehicle emission standards for small electric vehicles. The initiative may also lead to fiscal (such as subsidy schemes) and non-fiscal incentives (such as reserved parking space), compatible with State aid rules, where applicable. For this purpose, it is necessary to add a definition of a small electric car in motor vehicle legislation that can be used for targeted measures in EU legislation and by Member States. This would bring simplification for businesses, strengthening the business case to build small affordable electric cars profitably in Europe and reduce the price for consumers.

The present proposal is only a first step to deliver on the simplification agenda for the European automotive industry. It includes only a limited number of targeted, but effective simplification measures. In the simplification context, stakeholders raised other issues concerning simplification of the regulatory framework for the automotive industry that are not addressed in this Omnibus but will be considered in the further development and implementation of motor vehicle legislation.  As part of the consultations with stakeholders, the Association of European Automotive Manufacturers (ACEA) had cited approximately 130 upcoming pieces of legislation affecting the automotive industry. ( 23 )

However, this list from ACEA includes nearly 70 updates of UN Regulations, which are not all mandatory in EU legislation at this point. Of these, the European Commission has identified approximately 40 amendments of existing UN Regulations or new UN Regulations that the Commission will postpone or not adopt in the EU.

Furthermore, the simplification agenda will be based on the following general principles:

Grouping regulatory requirements into batches

The Commission could group new motor-vehicle specific regulatory requirements when setting mandatory application dates in secondary legislation – unless the legislator has established a different date in the legal act. There would be a unique “automotive compliance date” set, therefore easing regulatory compliance for businesses.

In addition, the Commission will ensure, to the extent legally possible, that for non-automotive specific legislation a mechanism is set to ensure that requirements for the automotive sector enter into force on the “automotive compliance date”.

Respecting lead time for industry

In the Industrial Action Plan for the EU automotive sector, the Commission has committed to give, when making legislative proposals, sufficient lead time for the industry to reflect such new regulatory requirements in the product development process. This is a general principle, the Commission stands ready to respect it, but it cannot be turned into a legal requirement in an Omnibus Act.

Scope of new regulatory requirements

In motor vehicle-specific legislation, there is always a different application date for new vehicle types and for all new vehicles (i.e., for existing vehicle types) to take into account the need for redevelopment. In certain cases, such as the eCall Regulation, requirements have only been established for new vehicle types. The decision not to regulate existing vehicle types needs to be taken on a case-by-case basis, considering the costs of redevelopment of existing vehicle types, which can have a high impact on small cars with lower margins, and the benefits of the new regulatory requirements

Simplifying the type-approval framework

With the increasing speed of innovation in the industry, in particular trends on automated driving and software updates, it is appropriate to assess the simplification potential in the EU type-approval framework for motor vehicles. Regulatory complexity can be a constraint for EU manufacturers in global competition with manufacturers from other jurisdictions.

In 2026, the Commission will undertake an evaluation of the Motor Vehicle Type-Approval Framework Regulation, Regulation (EU) 2018/858. This will help to assess the potential to reduce testing and reporting costs for the automotive industry. Preliminary analysis by the Commission services has identified the potential to reduce the number of laboratory tests during type-approval by using more virtual testing and by using risk-assessment practices to assess how ex-ante tests can be best combined with in-use monitoring (as already applied in the Euro 7 Regulation, where lighter ex ante tests are complemented by on-board monitoring of emission performance).

•Consistency with existing policy provisions in the policy area

The proposal is part of a package of measures concerning the competitiveness of the European automotive industry. It aims at reducing administrative and adjustment costs for industries to ensure a well-functioning single market for motor vehicles, while maintaining the high level of safety and environmental performance established in the regulatory framework.

•Consistency with other Union policies

This initiative contributes to the simplification of the regulatory framework for the automotive industry, as announced in the Industrial Action Plan for the European automotive sector. It is part of an Automotive Package, together with the revision of the CO2 performance for cars and vans, the Decarbonising Corporate Fleets and the Battery Booster to boost the competitiveness of the EU automotive industry in the transition to zero-emission mobility.

In line with the Action Plan, the present initiative improves coherence and consistency between different regulatory requirements. It implements the objectives of the Simplification Agenda and the Single Market Strategy for the automotive industry. The simplification measures do not affect the policy objectives behind the relevant regulations. The measures contribute to the decarbonisation of the automotive industry by removing regulatory obstacles for the uptake of electric light commercial vehicles, in line with the CO2 performance for cars and vans. The simplification measures do not affect the environmental performance of vehicles and are fully aligned with the environmental objectives of reducing air pollution and ambient noise from motor vehicles. The simplification measures do not reduce the safety performance of vehicles and are fully aligned with the EU policies for road safety. 

Furthermore, the Digital Omnibus 24 provides technical amendments to digital legislation related to the automotive sector, including but not limited to the entry of application for high-risk AI provisions, residual processing of special category personal data for AI training, testing and operation and consolidating provisions of EU data laws.

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

The proposal is based on Article 91 and 114 of the Treaty on the Functioning of the European Union, in line with the original legal bases for the adoption of the sectoral frameworks, which this proposal aims to amend.

•Subsidiarity (for non-exclusive competence)

The Regulations to be amended are EU legal acts. Accordingly, amendments to these Regulations need to be made at EU level.

•Proportionality

The initiative does not go beyond what is necessary to achieve the objectives of simplification and burden reduction without lowering the protection of human health and environment.

•Choice of the instrument

This proposal amends Regulations adopted by ordinary legislative procedure and therefore the amendments of those Regulations need to be adopted by a Regulation in accordance with the ordinary legislative procedure.

3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

•Ex-post evaluations/fitness checks of existing legislation

Not applicable.

•Stakeholder consultations

In the context of the Strategic Dialogue on the Future of the European Automotive Industry in January 2025 and the Public Consultation on the Future of the European Automotive Industry 25 , industry leaders raised the need for simplification of the regulatory framework. Subsequently, the Commission inquired industry and other stakeholders' perspectives in various bilateral exchanges, through written stakeholder submissions containing regulatory simplification proposals, and in a meeting with the Motor Vehicle Working Group 26 . Various suggestions for simplifying or clarifying certain provisions of automotive legislation and removing the unnecessary administrative burden stemming from these provisions emerged through these stakeholder inputs.

On 14 October 2025, the European Commission launched a Targeted Stakeholder Consultation in the form of an online survey, aiming to gather feedback on a preliminary list of amendments of existing automotive regulations. This survey was sent out to over 130 stakeholders (68 replies) of the automotive industry, comprising vehicle manufacturers, automotive component manufacturers, industry associations, NGOs, fleet operators, national type approval authorities, market surveillance authorities and other relevant national authorities. Stakeholders were invited to indicate their views on a preliminary list of amendments, i.e. whether they expect the measures to have a positive, neutral or negative economic, social or environmental impact, and an impact on the regulatory burden. Furthermore, the Commission received several position papers from stakeholders, providing additional suggestions, data and costs estimates which have been taken into account in the preparation of the present proposal.

Across all stakeholder groups, a strong support emerged for the proposed measures.

•Impact assessment

Given the need to urgently put forward a proposal to address the identified problems in order to reduce administrative burden for businesses and authorities it has not been possible to prepare an impact assessment.

However, following better regulation principles, this proposal is accompanied by a Commission staff working document that includes an analysis of the impacts of the proposed measures, based on existing data and information gathered during the targeted stakeholder consultation, written inputs received from stakeholders.

On the basis of the information available, it is expected that the amendments would entail significant annual cost savings of EUR 706 million for industry including SMEs, citizens and for public administrations.

•Regulatory fitness and simplification

This proposal is part of the commitment of the European Commission to lighten the regulatory burden for people, businesses and public administrations in the EU, to boost prosperity and resilience of the EU. The proposal is therefore aiming at simplifying provisions of automotive-related legislation, reducing unnecessary burdens and costs for businesses and authorities, without undermining the protection of the environment and the safety performance of vehicles.

•Fundamental rights

The proposal respects the fundamental rights enshrined in the Charter of Fundamental Rights of the European Union 27  and adheres to the principles recognised therein. The reduction of administrative burden on companies should lead to societal gains in terms of wealth creation, employment and innovation. At the same time, the proposal seeks to ensure a high level of protection of the environment and of safety of vehicles.

4.BUDGETARY IMPLICATIONS

This initiative will not imply any additional costs for the Commission.

5.OTHER ELEMENTS

•Implementation plans and monitoring, evaluation and reporting arrangements

The Commission will monitor the implementation and application of new provisions and compliance with them. Furthermore, the Regulations to be amended by this proposal are subject to regular evaluation of their efficiency, effectiveness in reaching their objectives, relevance, coherence and value added in accordance with better regulation principles. This proposal does not require an implementation plan.

•Detailed explanation of the specific provisions of the proposal

Proposed amendments to Regulation (EC) No 561/2006: the first proposed amendment is to allow Member States to exempt N2 28 e-vans - with a maximum authorised mass exceeding 3.5 tonnes but not exceeding 4.25 tonnes - engaged exclusively in domestic transport, from the obligation to install smart tachographs, in order to put them on equal footing with their fossil fuel equivalent, N1 diesel vans 29 .

The main expected impact for the proposed measure is a reduced cost for companies, in particular SMEs that are the primary users/buyers of such vans, that will no longer have to install smart tachographs for the given type of e-van. In addition, the removal of the tachograph will also determine a reduction of administrative burden/costs for the companies/drivers who will no longer have to download tachograph data (2 to 4 hours a month). Moreover, levelling the playing field between N1 diesel vans and N2 e-vans through reduced prices for the latter will help stimulate the uptake of such e-vans.

Motor caravans or motor caravan combinations that exceed 7.5 tonnes, also fall within the scope of the rules on driving times and rest rules and of the installation and use of the tachograph.

In case C-666/21 before the Court of Justice of the European Union (CJEU) 30 , a citizen argued that Regulations (EC) No 561/2006 and (EU) No 165/2014 are not intended for non-commercial users and that such vehicles should not be treated as commercial transport. However, the Court ruled that such rules could apply to non-commercial users with vehicles greater than 7.5 tonnes. In particular, the Court ruled that “the notion of ‘carriage by road of goods’, […] covers carriage by road by a vehicle whose maximum permissible mass, within the meaning of Article 4(m) of Regulation No 561/2006, as amended, exceeds 7.5 tonnes, including where it is fitted out not only as a temporary private living area but also for the non-commercial loading of goods, without that vehicle’s cargo capacity or the category in which it appears in the national road traffic register having any effect in that regard ”.

In order to clarify the legal framework surrounding the specific case of motor caravans with a maximum permissible mass exceeding 7.5 tonnes used for private reasons, and to provide legal clarity to the manufacturers and customers of such vehicles, the second proposed amendment consists of adding a new paragraph (s) to Article 13 of Regulation (EC) No 561/2006 that will allow Member States to exempt motor homes from the rules on driving times and rest periods, and on the tachograph. Moreover, the planned exemption from the tachograph obligation on these vehicles is going to bring reduced costs and more confidence to the drivers, who use motor caravans for tourism.

Proposed amendments to Regulation (EU) No 2019/2144 : the proposed amendment is to exempt N2 e-vans with a maximum permissible mass exceeding 3.5 tonnes and below 4.25 from the obligation to be equipped with speed limitation devices, thereby putting them on equal footing with their fossil fuel equivalent, N1 diesel vans. .

The main expected impact for the proposed measure is a reduced cost for companies, in particular SMEs that are the primary users/buyers of such vans. The cost saving will not only derive from the non-incurred costs related to the installation of the speed limitation device, but also from the increased operational flexibility deriving from the possibility to drive these vehicles at slightly higher speed when on the highway. In addition, levelling the playing field between N1 diesel vans and N2 e-vans through reduced prices for the latter will help stimulate the uptake of such e-vans. Finally, it is important to highlight that this exemption is not expected to produce any negative effect on the environmental or safety performance of the vehicles affected. Proposed amendments to Regulation (EC) No 2024/1257: The temperature conditions of the 'laboratory test of low temperature for emissions' referred to in Table 1 and 2 of Annex V are covered by the 'gaseous pollutant and PN in road testing RDE' test in the same tables. Demonstrating emission compliance at low temperature conditions (at -7 °C) is covered by having to comply to the Real Driving Emissions (RDE) requirements (from -7 °C to 38 °C) and, therefore, it is deemed justified to eliminate the dedicated low temperature laboratory (Type 6) test.

The effects to be expected from the proposed measure primarily centre around preserving the intent of the co-legislators to stick to Euro 6 rules in accordance with Article 14(7) of Regulation (EC) No 2024/1257, reducing regulatory burden without creating compliance challenges, and providing legal certainty.

Another proposed measure consists of referring to “vehicle categories” rather than “vehicle types” for Euro 7 engine (Separate Technical Unit) type-approval, i.e., “Required demonstration tests for all fuels for which the type-approval is granted per vehicle type category and a declaration of compliance for all fuels, all payloads and all applicable vehicle categories in respectively tables 3, 4, 7 and 8 of Annex V to Regulation (EU) 2024/1257”.

The proposed measure is expected to lead to a substantial reduction of regulatory burden, both administrative and testing, without compromising environmental standards. It avoids repetitive testing of engines in different vehicle types that use identical technology and cuts costs associated with multiple type-approvals and testing processes. It supports market stability and can potentially lead to lower vehicle prices, benefiting operators and consumers.

With another proposed measure, it will be clarified that the Commission is empowered to develop measures to ensure that on-board monitoring (OBM) and on-board fuel consumption monitoring (OBFCM) data are received, compiled, processed and stored effectively in a harmonised manner to monitor real-world performance of Euro 7 vehicle types.

A harmonised EU-level OBM/OBFCM data infrastructure could generate substantial cost savings compared with each Member State developing and maintaining its own systems. The savings arise from economies of scale, reduced duplication, and harmonised compliance processes. Instead of interacting with multiple national systems, vehicle manufacturers will be able to transmit standardised data once, reducing software-integration and certification expenses.

As Regulation (EC) No 540/2014 has become obsolete, it is proposed to repeal the Regulation with effect from 1 July 2027. Moreover, in accordance with Article 14 of Regulation 540/2014, the Council Directive 70/157/EEC 31 is repealed from 1 July 2027. To avoid any possible legal uncertainty, the present proposal confirms the repeal with the same date of entry into effect.

To replace the reference to the repealed Regulation, an amendment to Annex II to Regulation (EU) 2018/858 is proposed by reference to the noise-related Regulations of the Economic Commission for Europe of the United Nations (UNECE): Regulation No 51 32 on noise of M and N categories of vehicles; Regulation No 59 33 on replacement silencing systems and Regulation No 138 34 on quiet road transport vehicles or AVAS.

The proposed amendments to refer to UN Regulations would create a level playing field for EU car manufacturers when selling their cars globally by preventing them from having to follow two sets of regulations on noise. The proposed changes would also remove any potential loopholes and result in a simpler/more consistent framework for the automotive industry, type-approval authorities, and market surveillance authorities alike. In addition, society and the environment would benefit from the enhanced scope that restricts noise from backfire, sound actuators, and sound enhancement systems. Transitional provisions are proposed to ensure smooth transition of the industry to the modified legal framework.

Proposed amendment to Regulation (EU) 2018/858: the first proposed measure amending this Regulation consists of the introduction in Annex I, Part A, point 2 of Regulation (EU) 2018/858 of a new point 2.4 defining a sub-category for small electric vehicle.

The proposed amendment will allow EU legislation to target regulatory measures to this specific sub-category, with a view of incentivising production and uptake of small electric vehicles. For instance, when deciding on application dates of future motor vehicle regulations, the Commission will take into account the proportionally higher impact on development costs that new requirements can have on small electric vehicles as compared to heavier and more expensive ones. Moreover, a targeted incentive mechanism is introduced [add reference to CO2 review proposal] in the context of the CO2 vehicle emission standards in the form of a super-credit. This will allow vehicle manufacturers to benefit from the contribution of small electric vehicles in the achievement of the overall fleet-wide CO2 emission target, resulting in a strong incentive for vehicle manufacturers to produce and commercialise higher volumes of small electric vehicles. Furthermore, as announced in the Industrial Action Plan for the EU automotive sector, the Commission is to issue a Commission Recommendation with options for incentive schemes that, in line with State aid rules, where applicable, have proven effective in promoting the uptake of zero-emission vehicles. All electric vehicles will likely benefit from the Commission Recommendation, including small electric vehicles, as defined in the new subcategory.

The expected benefits of this amendment should be perceived by EU citizens in terms of larger advantages when purchasing or owning a small electric car, but this is subject to the implementation of these policies at national level.

Another proposed amendment to Regulation (EU) 2018/858 is introducing a new paragraph 4 to Article 5.

With this measure the Commission is empowered to adopt delegated acts aimed at setting out technical requirements for pure electric vehicles (PEV) and off-vehicle charging hybrid electric vehicles (OVC-HEV), as regards their communication and hardware interface of those vehicles with the recharging infrastructure, the electricity grid and the stationary power systems capable of supporting smart and bidirectional charging functionalities.

While electric vehicle technology rapidly advances and the interaction between vehicles, charging infrastructure, and the electricity grid is being increasingly regulated by non-sector specific legislation (DDC 2.0 - Regulation (EU) 2016/1388 and RfG 2.0 Regulation (EU) 2016/631), having a harmonised approach to vehicle related technical requirements in this field becomes crucial to avoid fragmentation and unnecessary administrative burden and costs.

In the future, a unified approach to interoperability will be essential for accelerating the development of emerging services like vehicle-to-grid (V2G) capabilities. These services can support grid stability, smooth out peak demand, lower energy costs for EV owners, and enable wider adoption of renewable energy.

2025/0422 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

amending Regulations (EC) No 561/2006, (EU) 2018/858, (EU) 2019/2144 and (EU) 2024/1257 of the European Parliament and of the Council as regards the simplification of technical requirements and testing procedures for motor vehicles and repealing Council Directive 70/157/EEC and Regulation No 540/2014 of the European Parliament and of the Council

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 91 and 114 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee 35 ,

Having regard to the opinion of the Committee of the Regions 36 ,

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)The 2024 Draghi report on European competitiveness 37 highlighted that the number and the complexity of rules risk limiting the room for manoeuvre for Union undertakings and preventing them from remaining competitive. A detailed analysis of Regulations (EC) No 561/2006 38 , (EU) 2018/858 39 , (EU) 2019/2144 40 and (EU) 2024/1257 41  of the European Parliament and of the Council also pointed to excessive administrative burden and costs associated with the requirements set out therein. Based on those findings, it is appropriate to simplify certain obligations on manufacturers and competent authorities set out in automotive-related legislation and to reduce unnecessary burdens and costs for businesses and authorities, without undermining the protection of the environment and the safety performance of vehicles.

(2)The Industrial Action Plan for the EU automotive sector 42 called for a regulatory simplification package for the automotive industry, by improving coherence and consistency between different regulatory requirements.

(3)Article 114 TFEU is the appropriate legal basis to adopt the measures necessary for the establishment and functioning of the internal market. In addition to Article 114 TFEU, this Regulation should have an additional specific basis to cover amendments to Regulation (EC) No 561/2006 that is based on Article 91 TFEU.

(4)While this Regulation is adopted for the establishment and functioning of the internal market, the simplification and streamlining of motor vehicle technical requirements, testing procedures and type-approval rules also support the Union’s broader objective of fostering the gradual integration of candidate countries into the Union market. By promoting regulatory convergence, alignment with United Nations Economic Commission for Europe (UNECE) Regulations and coherent implementation of the Union acquis, this Regulation contributes to reducing technical barriers to trade, strengthening integrated European automotive value chains and enhancing the resilience and competitiveness of the European automotive ecosystem, without affecting the autonomy of Union law or decision-making.

(5)To improve the working conditions of drivers, road safety and fair competition, Regulations (EC) No 561/2006 and (EU) No 165/2014 of the European Parliament and of the Council 43  require the installation of a tachograph in goods vehicles with a weight above 3,5 tonnes. However, Article 3(2) of Regulation (EU) No 165/2014 allows Member States to exempt from that requirement the vehicles mentioned in Article 13(1) and (3) of Regulation (EC) No 561/2006. 

(6)Due to the weight of the battery, battery-electric light commercial vehicles might exceed a weight of 3,5 tonnes and are therefore subject to the requirements laid down in Regulations (EC) No 561/2006 and (EU) No 165/2014, even though they have the same payload and use case as light commercial vehicles with an internal combustion engine that are outside the scope of those Regulations. Compliance with the requirements laid down in Regulations (EC) No 561/2006 and (EU) No 165/2014 represents a significant effort for vehicle operators and drivers and slows down the increase in the number of battery-electric light commercial vehicles.

(7)To reduce unnecessary costs for vehicle manufacturers and operators, many of them being small and medium-sized companies, the requirement of tachograph installation for battery-electric light commercial vehicles with a weight below 4,25 tonnes should be removed.

(8)As it is for the Member States to decide whether to use that exception, the exemption should only apply to electric light commercial vehicles engaged exclusively in domestic transport.

(9)To reduce the burden that the installation and use of a tachograph places on non-professional drivers driving large motor caravans for non-commercial purposes and the impact that this can have on the demand for such vehicles, national authorities should be able to exempt such vehicles and operations from the driving and rest time rules and the use of the tachograph, provided that the objectives referred to in Article 1 of that Regulation are not jeopardised.

(10)Regulation (EU) 2018/858 of the European Parliament and of the Council permits the type-approval of motor vehicles as regards sound level and acoustic vehicle alerting systems either through Regulation (EU) No 540/2014 of the European Parliament and of the Council 44 or through the UN Regulations, including Regulations No 138 45 , No 51 46 , and No 59 47 of the UNECE. That parallel system risks causing market fragmentation. Moreover, Regulation (EU) No 540/2014 has become obsolete due to a deficit of updates in comparison with the three above-mentioned UNECE regulations. To ensure a coherent framework and full alignment with UN regulations, Regulation (EU) No 540/2014 should be repealed and Annex II to Regulation (EU) 2018/858 should be amended to only allow compliance with the applicable UN Regulations.

(11)As battery electric vehicle’s technology is evolving at a fast pace and the number of electric vehicles on the market is increasing, interoperability between vehicles, the charging infrastructure and the electricity grid is becoming increasingly critical. A harmonised approach to interoperability at Union level is essential to avoid fragmentation of certain technical requirements which are being developed outside of the vehicle type-approval framework, notably as regards the implementation of the revised Network Codes (a network code on demand connection established by Commission Regulation (EU) 2016/1388 48 and a network code on requirements for grid connection of generators established by Commission Regulation (EU) 2016/631 49 ). Therefore, to ensure battery electric vehicle’s harmonised capabilities and enable interoperable vehicle-to-grid services, vehicles will need to meet certain technical requirements. Therefore, to ensure interoperability between vehicles, the charging infrastructure and the electricity grid, the empowerment should be provided in Regulation (EU) 2018/858 for the Commission to set out technical requirements as regards the communication and hardware interface of pure electric vehicles (PEV) and off-vehicle charging hybrid electric vehicles (OVC-HEV)with the recharging infrastructure, the electricity grid and the stationary power systems. 

(12)The transition towards a more sustainable road transport has mainly been driven by the growth of sales of premium electric vehicle models. However, to ensure the continuity of this transition, it is necessary to make electric vehicles more affordable. Targeted regulatory measures (longer transitional period for new requirements, targeted incentives in the CO2 vehicle emission standards), fiscal (such as subsidy schemes) and non-fiscal (such as reserved parking space) benefits, in line with State aid rules, where applicable, can contribute to better affordability of small electric vehicles. However, a legal definition of a small electric vehicle is currently not provided in the type-approval framework. Therefore, it is appropriate to introduce a sub-category under the existing M1 vehicle category. 

(13)When deciding on application dates of future motor vehicle requirements affecting this new small electric vehicle sub-category, the proportionally higher impact on development costs that new requirements can have on these vehicles as compared to heavier and more expensive ones, should be taken into account.

(14)As announced in the Industrial Action Plan for the EU automotive sector, the Commission is to issue a Commission Recommendation with options for incentive schemes that have proven effective in promoting the uptake of zero-emission vehicles and are compliant with competition rules. Recommendations to Member States for fiscal (i.e. purchase subsidies, tax exemptions, road-toll exemption) and non-fiscal (i.e. size-based parking rights allocation, dedicated charging infrastructure, etc.) measures could be also based on the new vehicle sub-category of small electric cars.

(15)Article 3(1) of Council Directive 92/6/EEC 50 on the installation and use of speed limitation devices for certain categories of vehicles requires the installation and use of speed limitation devices in vehicles of the category N2 and N3 . Under that Article, such vehicles can be used on the road only if equipped with a speed limitation device. The installation requirement has been integrated into motor vehicle type-approval legislation with Regulation (EU) 2019/2144 of the European Parliament and of the Council.

(16)Due to the weight of the battery, battery-electric light commercial vehicles might exceed a weight of 3,5 tonnes and are subject to the requirement to be equipped with speed limitation devices although they have the same payload and use case as light commercial vehicles with an internal combustion engine that are outside the scope of the Regulation (EU) 2019/2144. That requirement imposes unnecessary costs on vehicle manufacturers and enterprises purchasing such vehicles, slowing down the increase in the number of zero-emission light commercial vehicles. It is therefore appropriate to exempt zero-emission vehicles of category N2 with maximum technically permissible laden mass between 3,5 and 4,25 tonnes from the requirement to be equipped with speed limitation devices.

(17)Manufacturers of category M1 and N1 vehicles are required to perform laboratory tests of engines in low-temperatures pursuant to Annex V to Regulation (EU) 2024/1257. As the temperature conditions of the laboratory test of low temperature for emissions are covered by the gaseous pollutant and PN in road testing Real Driving Emissions test, demonstrating emission compliance at low temperature conditions (at -7 °C) is covered by having to comply to the Real Driving Emissions requirements (from -7 °C to 38 °C). Therefore, to reduce costs for manufacturers related to the specific requirements laid down Annex V to Regulation (EU) 2024/1257, it is appropriate to remove that dedicated low temperature laboratory requirement as such removal will not compromise environmental standards ensured by the Real Driving Emissions test

(18)Annex V to Regulation (EU) 2024/1257 requires that, for the engine testing of heavy-duty vehicles, demonstration tests be performed for all applicable fuels within each vehicle type. In order to significantly reduce administrative costs related to those tests without compromising environmental standards, it is appropriate to introduce test requirements at vehicle category level in tables 1, 2, 3, 4, 7 and 8 of that Annex V.

(19)Regulation (EU) 2024/1257 introduces on-board monitoring (OBM) systems and on-board fuel and electric energy consumption monitoring (OBFCM) devices, which are aimed at facilitating real-time compliance checks, harmonisation efforts, lifecycle oversight, reduced testing expenses, and streamlined enforcement measures. In order to efficiently receive, process, and store OBM and OBFCM data it is necessary to clarify that the empowerment of the Commission to adopt implementing measures also covers the adoption of methods and requirements necessary for the monitoring compliance of vehicle types. 

(20)To ensure legal clarity following the repeal of Regulation (EU) No 540/2014 that contained a provision repealing Council Regulation 70/157/EEC 51 , it is necessary to provide for the repeal of Council Directive 70/157/EEC in this Regulation. To provide manufacturers of vehicles with sufficient time to adjust their production processes, it is appropriate to provide for the transitional period during which vehicles could still be approved in accordance with Regulation (EU) No 540/2014,

HAVE ADOPTED THIS REGULATION:

Article 1

Amendments to Regulation (EC) No 561/2006

Article 13(1) of Regulation (EC) No 561/2006 is amended as follows:

(1)the following point (fa) is inserted:

‘(fa) vehicles used for the carriage of goods and propelled by means of electricity, the maximum permissible mass of which, including the mass of a trailer or semi-trailer, exceeds 3,5 tonnes but does not exceed 4,25 tonnes;’;

(2)the following point (s) is added:

‘(s) motor caravans, as defined in Part A, point 5.1, of Annex I to Regulation (EU) 2018/858, used exclusively for non-commercial carriage.’.

Article 2

Amendments to Regulation (EU) 2018/858

Regulation (EU) 2018/858 is amended as follows:

(1)in Article 5, the following paragraph 4 is inserted: 

‘4. The Commission is empowered to adopt delegated acts in accordance with Article 82 supplementing this Regulation by laying down technical requirements as regards the communication and hardware interface of pure electric vehicles (PEV) and off-vehicle charging hybrid electric vehicles (OVC-HEV) with the recharging infrastructure, the electricity grid and the stationary power systems capable of supporting smart and bidirectional charging functionalities.’

(2)Annexes I and II are amended in accordance with Annex II to this Regulation.

Article 3

Amendment to Regulation (EU) 2019/2144

In Article 9 of Regulation (EU) No 2019/2144, the following paragraph 5a is inserted:

‘5a. Vehicles of category N2 propelled by means of electricity, with maximum technically permissible laden mass between 3,5 and 4,25 tonnes, shall not be required to be equipped with speed limitation devices in accordance with UN Regulation No 89.’.

Article 4

Amendments to Regulation (EU) 2024/1257

Regulation (EU) 2024/1257 is amended as follows:

(1)Article 14(4), point (j) is replaced by the following:

‘(j) the methods, requirements and tests, including compliance thresholds, to ensure performance of OBFCM devices, OBD and OBM systems and the sensors of such devices and systems, for off-board communication of data recorded by such devices and systems, including for the purpose of monitoring compliance of vehicle types;’;

(2) Annex V is amended in accordance with Annex I to this Regulation.

Article 5

Repeals

1.Regulation (EU) No 540/2014 is repealed.

2.Directive 70/157/EEC is repealed with effect from 1 July 2027.

Article 6

Transitional provision

Certificates of conformity for new vehicles produced after [OP: please insert the date of entry into force of this Regulation] and approved before 1 July 2028 in accordance with Regulation (EU) 540/2014 shall continue to be valid for the purposes of Articles 48 and 49 of Regulation (EU) 2018/858.

Article 7

Entry into force and application

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

2.It shall apply from [on the twentieth day following that of its publication in the Official Journal of the European Union]. However, Articles 3 shall apply from …[the transposition date in the proposal amending Directive 92/6]

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Strasbourg,

LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT

1.FRAMEWORK OF THE PROPOSAL/INITIATIVE3

1.1.Title of the proposal/initiative3

1.2.Policy area(s) concerned3

1.3.Objective(s)3

1.3.1.General objective(s)3

1.3.2.Specific objective(s)3

1.3.3.Expected result(s) and impact3

1.3.4.Indicators of performance3

1.4.The proposal/initiative relates to:4

1.5.Grounds for the proposal/initiative4

1.5.1.Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative4

1.5.2.Added value of EU involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this section 'added value of EU involvement' is the value resulting from EU action, that is additional to the value that would have been otherwise created by Member States alone.4

1.5.3.Lessons learned from similar experiences in the past4

1.5.4.Compatibility with the multiannual financial framework and possible synergies with other appropriate instruments5

1.5.5.Assessment of the different available financing options, including scope for redeployment5

1.6.Duration of the proposal/initiative and of its financial impact6

1.7.Method(s) of budget implementation planned6

2.MANAGEMENT MEASURES8

2.1.Monitoring and reporting rules8

2.2.Management and control system(s)8

2.2.1.Justification of the budget implementation method(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed8

2.2.2.Information concerning the risks identified and the internal control system(s) set up to mitigate them8

2.2.3.Estimation and justification of the cost-effectiveness of the controls (ratio between the control costs and the value of the related funds managed), and assessment of the expected levels of risk of error (at payment & at closure)8

2.3.Measures to prevent fraud and irregularities9

3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE10

3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected10

3.2.Estimated financial impact of the proposal on appropriations12

3.2.1.Summary of estimated impact on operational appropriations12

3.2.1.1.Appropriations from voted budget12

3.2.1.2.Appropriations from external assigned revenues17

3.2.2.Estimated output funded from operational appropriations22

3.2.3.Summary of estimated impact on administrative appropriations24

3.2.3.1. Appropriations from voted budget24

3.2.3.2.Appropriations from external assigned revenues24

3.2.3.3.Total appropriations24

3.2.4.Estimated requirements of human resources25

3.2.4.1.Financed from voted budget25

3.2.4.2.Financed from external assigned revenues26

3.2.4.3.Total requirements of human resources26

3.2.5.Overview of estimated impact on digital technology-related investments28

3.2.6.Compatibility with the current multiannual financial framework28

3.2.7.Third-party contributions28

3.3.Estimated impact on revenue29

4.Digital dimensions29

4.1.Requirements of digital relevance30

4.2.Data30

4.3.Digital solutions31

4.4.Interoperability assessment31

4.5.Measures to support digital implementation32

1.FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1.Title of the proposal/initiative

1.2.Policy area(s) concerned 

1.3.Objective(s)

1.3.1.General objective(s)

1.3.2.Specific objective(s)

1.3.3.Expected result(s) and impact

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.

1.3.4.Indicators of performance

Specify the indicators for monitoring progress and achievements.

1.4.The proposal/initiative relates to: 

¨ a new action 

¨ a new action following a pilot project / preparatory action 52  

¨ the extension of an existing action 

¨ a merger or redirection of one or more actions towards another/a new action

1.5.Grounds for the proposal/initiative 

1.5.1.Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative

1.5.2.Added value of EU involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this section 'added value of EU involvement' is the value resulting from EU action, that is additional to the value that would have been otherwise created by Member States alone.

1.5.3.Lessons learned from similar experiences in the past

1.5.4.Compatibility with the multiannual financial framework and possible synergies with other appropriate instruments

1.5.5.Assessment of the different available financing options, including scope for redeployment

1.6.Duration of the proposal/initiative and of its financial impact

¨ limited duration

–¨    in effect from [DD/MM]YYYY to [DD/MM]YYYY

–¨    financial impact from YYYY to YYYY for commitment appropriations and from YYYY to YYYY for payment appropriations.

¨ unlimited duration

–Implementation with a start-up period from YYYY to YYYY,

–followed by full-scale operation.

1.7.Method(s) of budget implementation planned 

¨ Direct management by the Commission

–¨ by its departments, including by its staff in the Union delegations;

–¨    by the executive agencies

¨ Shared management with the Member States

¨ Indirect management by entrusting budget implementation tasks to:

–¨ third countries or the bodies they have designated

–¨ international organisations and their agencies (to be specified)

–¨ the European Investment Bank and the European Investment Fund

–¨ bodies referred to in Articles 70 and 71 of the Financial Regulation

–¨ public law bodies

–¨ bodies governed by private law with a public service mission to the extent that they are provided with adequate financial guarantees

–¨ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that are provided with adequate financial guarantees

–¨ bodies or persons entrusted with the implementation of specific actions in the common foreign and security policy pursuant to Title V of the Treaty on European Union, and identified in the relevant basic act

–¨ bodies established in a Member State, governed by the private law of a Member State or Union law and eligible to be entrusted, in accordance with sector-specific rules, with the implementation of Union funds or budgetary guarantees, to the extent that such bodies are controlled by public law bodies or by bodies governed by private law with a public service mission, and are provided with adequate financial guarantees in the form of joint and several liability by the controlling bodies or equivalent financial guarantees and which may be, for each action, limited to the maximum amount of the Union support.

Comments

2.MANAGEMENT MEASURES 

2.1.Monitoring and reporting rules 

2.2.Management and control system(s) 

2.2.1.Justification of the budget implementation method(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed

2.2.2.Information concerning the risks identified and the internal control system(s) set up to mitigate them

2.2.3.Estimation and justification of the cost-effectiveness of the controls (ratio between the control costs and the value of the related funds managed), and assessment of the expected levels of risk of error (at payment & at closure) 

2.3.Measures to prevent fraud and irregularities 

3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected 

·Existing budget lines

In order of multiannual financial framework headings and budget lines.

·New budget lines requested

In order of multiannual financial framework headings and budget lines.

3.2.Estimated financial impact of the proposal on appropriations 

3.2.1.Summary of estimated impact on operational appropriations 

–¨    The proposal/initiative does not require the use of operational appropriations

–¨    The proposal/initiative requires the use of operational appropriations, as explained below

3.2.1.1.Appropriations from voted budget

EUR million (to three decimal places)

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EUR million (to three decimal places)

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3.2.1.2.Appropriations from external assigned revenues

EUR million (to three decimal places)

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EUR million (to three decimal places)

EUR million (to three decimal places)

3.2.2.Estimated output funded from operational appropriations (not to be completed for decentralised agencies)

Commitment appropriations in EUR million (to three decimal places)

3.2.3.Summary of estimated impact on administrative appropriations 

–¨    The proposal/initiative does not require the use of appropriations of an administrative nature

–¨    The proposal/initiative requires the use of appropriations of an administrative nature, as explained below

3.2.3.1. Appropriations from voted budget

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3.2.3.2.Appropriations from external assigned revenues

3.2.3.3.Total appropriations

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The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together, if necessary, with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

3.2.4.Estimated requirements of human resources 

–¨    The proposal/initiative does not require the use of human resources

–¨    The proposal/initiative requires the use of human resources, as explained below

3.2.4.1.Financed from voted budget

Estimate to be expressed in full-time equivalent units (FTEs)