Chinese electric vehicle brand Skywell is looking for a new UK distributor after Innovation Automotive closed with immediate effect, ending one of the first distributor agreements for a new Chinese entrant to the UK market.
The move comes as competition intensifies among Chinese manufacturers entering Britain, with growing pressure on distributors to invest in dealer networks, marketing and aftersales support while competing in an increasingly crowded electric vehicle market.
Innovation Automotive had represented Skywell in the UK for five years but has now ceased trading after its owners, the Hmicho family, decided to return their focus to businesses in the Middle East.
David Clark, Skywell UK general manager, confirmed the distributor’s closure and said the decision reflected the increasing investment required to compete in the UK.
He said: “The UK is one of the most competitive new car markets in Europe, and with a strong focus on electrification – and with such an influx of new Chinese brands making their appearance in the UK – it requires continuous, significant investment from the OEM or the appointed distributor to remain competitive.
“The owners of Innovation Automotive – the Hmicho family – operate a successful portfolio of businesses across the Middle East, and after five years’ operating Innovation Automotive in the UK, have taken the decision to close Innovation Automotive, unable to meet the UK markets required investment levels, and return to the Middle East with immediate effect.”
Clark stressed that the closure was not a reflection on Skywell itself.
He said: “The closure of Innovation Automotive is in no way a reflection upon Skywell, who are now seeking an alternative distributor for the UK market.”
He added that the updated BE11, which went on sale in January, incorporated changes following customer feedback, including additional safety features, interior improvements and revised ride and handling developed and tested in the UK.
Dealer network informed
Innovation Automotive appointed 16 Skywell dealerships across England and Wales during 2025 and 2026.
Clark said all had been informed of the company’s closure.
He also confirmed that all remaining new Skywell vehicle stock had been purchased and registered during June.
Innovation Automotive retains a significant stock of Skywell parts, which Clark said he hopes will transfer to a new operator in the coming weeks to ensure continued support for existing customers.
He said: “The expectation is that the warranty administration will also transfer to a new party, again, so that ongoing support can be offered to UK owners.
“While the terms of these agreements haven’t been finalised yet, I hope to be able to confirm this shortly.”
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DFSK future remains uncertain
The future for owners of DFSK vehicles is less clear.
Clark said the company’s remaining UK parts stock would also be transferred, but no third party has yet agreed to take over future parts ordering or warranty administration.
He said: “Unfortunately, there has yet to be interest from a third-party, to take over DFSK’s future parts ordering and warranty administration from Innovation Automotive, and therefore, the warranty previously administered by Innovation Automotive will no longer be available to owners.”
He added that all Innovation Automotive employees were made redundant on June 30.
Clark said: “I would like to take the opportunity to recognise the dedication, integrity and professionalism of my past and present colleagues who worked tirelessly to support Skywell’s business vision.”
The closure marks one of the first occasions where a newly introduced Chinese car brand has lost its UK distribution partner shortly after entering the market, underlining the increasingly competitive environment facing new entrants as more manufacturers target UK growth.