Simplification of technical requirements and testing procedures for motor vehicles

PURPOSE: to revise and simplify the EU regulatory framework governing motor vehicles.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: the automotive value chain is a pillar of the EU economy, accounting for EUR 589.3 billion and 3.7% of total value added of Europe’s GDP, and direct employment of 10.6 million Europeans. 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. Representatives from the EU’s automotive industry have recently highlighted that a high number of legislations must be complied with by European vehicle manufacturers between now and 2030, resulting in up to 25% research & development costs in certain cases.

This proposal is part of the Automotive Omnibus which aims to remove regulatory barriers that disproportionately affect electric vehicles, in particular in the light commercial and small passenger car segments. It is implemented through two parallel legislative proposals: this proposed Regulation and a proposed Directive.

CONTENT: this proposal seeks to amend several key EU legislative acts governing motor vehicles in order to simplify technical requirements and testing procedures, reduce administrative burden, and improve regulatory coherence, while maintaining high levels of road safety, environmental protection, and market oversight.

More specifically, it amends Regulations (EC) No 561/2006, (EU) 2018/858, (EU) 2019/2144, and (EU) 2024/1257, with the objective of reducing unnecessary regulatory complexity, eliminating overlaps, and improving consistency across EU vehicle legislation. It seeks to make type-approval and compliance procedures more efficient for manufacturers and authorities, better reflecting technological progress and current market conditions.

Moreover, as part of this simplification effort, the proposal repeals Council Directive 70/157/EEC and Regulation (EU) No 540/2014, which contain outdated or redundant provisions, notably in the area of vehicle noise and technical standards. Their repeal contributes to greater legal clarity and consolidation of applicable rules within the updated regulatory framework.

The proposed Regulation concerns the following:

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. An amendment allows Member States to exempt N2 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.

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.

In order to clarify the legal framework applicable to the specific case of motorhomes with a maximum authorized mass exceeding 7.5 tonnes used for private purposes, a second proposed amendment consists of allowing Member States to exempt motorhomes from the rules relating to driving times and rest periods, as well as the tachograph.

Accelerating the uptake of small affordable electric vehicles

The proposal establishes the legal basis for a new ‘small EV’ category, covering pure electric passenger cars below a defined length threshold. There is currently a lack of small affordable electric vehicles on the European market. 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, strengthen the business case to build small affordable electric cars profitably in Europe and reduce the price for consumers.

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. The proposal aligns EU type-approval requirements more closely with international standards, while expanding the Commission’s powers to adopt delegated acts on technical requirements for EVs.

The changes also aim to refer to ‘vehicle categories’ rather than ‘vehicle types’ for type approval of Euro 7 engines.

Reducing the adjustment costs related to Euro 7 emission tests

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. Therefore, the proposal streamlines emissions testing under the Euro 7 regime. It also provides for the development of on-board fuel consumption monitoring (OBFCM) devices and on-board monitoring (OBM) systems, as well as common methods for data processing.

Based on available information, it is expected that the amendments will result in significant annual savings of EUR 706 million for industry, including SMEs, citizens and public administrations.