This Week in Automotive — Brussels (#28, 2026)
Automotive circularity Regulation (EU) 2026/1738 enters Official Journal; Commission finalises real-world CO2 data rules for trucks; new Euro 7 battery and brake testing requirements published; sector-specific antitrust and aid actions; Council reviews fuel tax derogation for Croatia.
July 19, 2026 to July 25, 2026
Automotive circularity Regulation (EU) 2026/1738 enters Official Journal; Commission finalises real-world CO2 data rules for trucks; new Euro 7 battery and brake testing requirements published; sector-specific antitrust and aid actions; Council reviews fuel tax derogation for Croatia.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• 📚 What We're Reading This Week
European Commission
Commission approves €54 million Luxembourgish State aid for road and rail firms under METSAF
On 23 July 2026, the European Commission approved a €54 million Luxembourgish State aid scheme for companies in the road and rail transport sectors facing increased fuel costs attributed to the Middle East crisis. The aid, provided under the Middle East Crisis Temporary State Aid Framework (METSAF)—adopted on 29 April 2026—can cover up to 70% of additional fuel costs incurred between March and December 2026. The decision, assessed in accordance with Article 107(3)(c) TFEU and METSAF Sections 1 and 2.2, found the scheme necessary, proportionate, and in line with competition rules. METSAF remains in force until 31 December 2026.
Commission sets rules for real-world CO₂ and energy data on heavy-duty vehicles
On 24 July 2026, the Commission adopted Implementing Regulation (EU) 2026/1787, establishing procedures for regular collection of real-world fuel and energy consumption data from new heavy-duty vehicles under Regulation (EU) 2019/1242. From July 2028, data—captured by on-board monitoring devices during periodic roadworthiness tests—must be reported by Member States using EEA transmission tools. The regulation specifies data protection, retention periods, and interoperability measures, aiming to strengthen the representativeness of fleet CO₂ baselines in efficiency and environmental monitoring.
Commission clarifies Euro 6 phase-out and aligns emission procedures with UN standards
Commission Regulation (EU) 2026/1791, published 24 July 2026, amends Regulation (EU) 2017/1151 to reflect final registration dates for Euro 6 vehicles after Euro 7 adoption, streamline methodology for hydrogen-fuelled light vehicles, and align emission type-approval procedures with UN Regulations No 154 and No 168. It introduces technical updates for conformity assessment, including power measurement for certain hybrid configurations and corrections to procedures for evaporative emissions and on-board diagnostics, facilitating harmonisation of technical requirements across Member States and international regulatory instruments.
Automotive sector: Commission mobilises EGF support for dismissed Finnish car workers
On 23 July 2026, the European Commission proposed to mobilise €410,310 from the European Globalisation Adjustment Fund (EGF) in support of 235 workers made redundant by Valmet Automotive in Finland. The workforce reduction follows expiry of major manufacturing contracts amid a sector downturn. The measure, pending Council and Parliament approval, complements national labour market interventions, with 60% of total costs covered by the EGF. The package targets re-skilling, job search assistance, and start-up support to facilitate re-employment.
Commission finalises Euro 7 brake particle and battery endurance testing rules
On 22 July 2026, the Commission published two implementing regulations related to Euro 7 requirements. Regulation (EU) 2026/1762 sets detailed methodologies for type-approval of brake particle emissions in M1 and N1 vehicles, aligned with UN Regulation No 179. Regulation (EU) 2026/1764 amends the framework for in-vehicle battery durability, low temperature range, and system power determination pursuant to UN Regulations Nos 83, 154, and 177. Application of new battery and OBFCM (on-board fuel consumption monitoring) rules for pure electric vehicles is deferred to 2030, ensuring manufacturers and approval authorities a transition period.
eur-lex.europa.eu | eur-lex.europa.eu
EU Legislation (Official Journal)
Regulation (EU) 2026/1738 on vehicle circularity and end-of-life management
Regulation (EU) 2026/1738, published in OJ L on 24 July 2026, establishes harmonised circularity requirements for vehicle design and management of end-of-life vehicles. It amends Regulations (EU) No 168/2013, 2018/858, 2019/1020, and 2023/1542 and repeals Directives 2000/53/EC and 2005/64/EC. The regulation mandates minimum recycled content for plastics, targets for reuse and recyclability, comprehensive extended producer responsibility, stricter export and tracking of used vehicles, and digital vehicle passports. Staged application begins in 2029, with key provisions—such as 85% recyclability and battery removability—coming into force in 2032.
EU Council
Council authorises Croatia’s temporary reduction of fuel excise duties
The Council Implementing Decision (EU) 2026/1775 of 10 July 2026 authorises Croatia to reduce rates of excise duty on gas oil and unleaded petrol below EU minimum levels for six months, starting 1 August 2026. The derogation, based on Article 19 of Directive 2003/96/EC, responds to energy price surges linked to Middle East instability. The reduced rates may not exceed EUR 0.225/litre for gas oil and EUR 0.2195/litre for petrol.
Environment ministers hold informal session
On 23 July 2026, environment ministers met informally in the Environment Council configuration. No agenda or outcome summary was provided.
What We're Reading This Week
- Volkswagen’s Chinese branch doubles down on self-driving technology: Volkswagen's China division accelerates investment in autonomous driving to strengthen its position in the world's largest auto market.
- The challenges companies face to launch robotaxis in Europe: Strict regulations and complex urban environments are delaying widespread adoption of robotaxis by companies in Europe.
