9:24 am, July 6, 2026
Skywell dealers have been left in limbo after importer Innovation Automotive has ceased trading, raising questions over the future of the Chinese car brand in the UK.
Innovation Automotive, which appointed 16 Skywell dealers across England and Wales during 2025 and 2026, has blamed the need for huge investments in order to compete in the UK car market, especially as new Chinese brands continue to arrive en masse.
In a statement confirming the closure, Innovation Automotive general manager David Clark told Car Dealer: ‘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 market’s required investment levels, and return to the Middle East with immediate effect.’
The collapse leaves Skywell dealers’ futures in doubt, although Clark insisted the closure ‘is in no way a reflection upon Skywell’ and confirmed the Chinese manufacturer is actively searching for a replacement UK distributor.
Clark confirmed all remaining new car stock was been sold to V12 Sports and Classic in June, including Innovation Automotive’s press and demo fleet.
On its website, V12 Sports and Classics said it had 50 units remaining of the Skywell BE11 electric SUV, and was offering the cars from £13,995 – down from the £32,500 list price.
V12 Sports and Classics’ website on June 6
Innovation Automotive also said it hopes to secure ongoing support for existing Skywell owners by transferring its substantial UK parts inventory and warranty administration to a new organisation.
Clark said: ‘Innovation Automotive still hold a significant volume of Skywell parts stock; which we hope to relocate to new owners in the coming weeks, enabling the continued support for Skywell vehicles in-market.’
He added that warranty administration is also expected to move to a new provider, although agreements have yet to be completed.
Skywell dealers were looking forward to stocking the facelifted BE11 model, which was due to go on sale in January 2027.
It had been developed in response to early customer feedback, and press reports that panned the original model. The updated car features new safety systems, upgraded interior equipment and improved ride and handling following engineering and testing work carried out in the UK.
DFSK EC35
The picture is far less positive for owners of DFSK models, however. While remaining parts stock will be transferred elsewhere, Innovation Automotive admitted it has been unable to find another company willing to take over warranty administration.
‘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,’ Clark said.
Innovation Automotive confirmed all employees were made redundant on June 30.
Paying tribute to the workforce, Clark said: ‘I would like to recognise the dedication, integrity and professionalism of my past and present colleagues who worked tirelessly to support Skywell’s business vision.’
