The circular economy aims to decouple growth from environmental impacts by optimizing resource use, minimizing waste and pollution. The European Union (EU) has the ambition to lead a circular economy transition on a global level. Realizing the transition is complex, because it requires substantial and interconnected changes in the current system. Previous literature has identified the main drivers and barriers to a circular economy, categorizing them as technical, economic, regulatory and cultural. Despite its relevance, this literature has a broad focus, not taking into account the characteristics of specific industry sectors. More granular insight is essential to overcome barriers, while leveraging drivers. To this end, research focusing on these drivers and barriers within specific sectors is emerging. However, to date, this research is recent and limited, leaving a large and critical knowledge gap still to be addressed. In this study, we focus on the EU automotive sector. Specifically, in the context of the on-going review of the end-of-life vehicles (ELV) directive, we are carrying out an investigation into the barriers and drivers for increasing the uptake of recycled plastics embedded in new vehicles put on the EU market. Through the analysis of literature and in-depth interviews with key stakeholders (including vehicle manufacturers, suppliers, recyclers, experts and industry associations) we outline the value chain of plastics in the sector, while identifying and explaining specific drivers and barriers to recycling. In this paper we present some initial results of this ongoing effort. From a practice perspective, these results contribute to a better understanding on how to advance circularity in the EU automotive sector. From a theory perspective, the results illustrate how circularity barriers and drivers may be identified at a sectoral level. This may provide future studies with a methodological blueprint to replicate this work in other sectors, as a way to continue addressing the aforementioned knowledge gap.