With rapid increases in automobile ownership, the disposal of end-of-life vehicles (ELVs) is an important factor for the automobile industry's sustainable development. As an institutional concept related to circular economy development, extended producer responsibility (EPR) is increasingly emphasized in ELV management. This study aims to identify barriers to EPR implementation in China's automotive industry and make recommendations for future EPR development. Based on policy analysis, we examine the historical development of China's EPR system and its implementation in the automotive industry. By examining the current state of ELV recycling, we identify barriers to EPR implementation in policy, regulation, technology, and producer engagement. We suggest that by learning from international experience, China can create supporting systems to ensure effective EPR implementation, which requires collaboration among multiple actors.