Skywell’s official UK importer, Innovation Automotive, has unexpectedly ceased operations, placing the Chinese electric vehicle manufacturer’s British presence in uncertainty.

Skywell made its UK debut with the BE11 SUV towards the end of 2024. However, the company struggled to gain meaningful traction in the market. Its best performance came in June 2026, when it recorded 64 registrations — surpassing the combined total of 63 units sold throughout 2024 (6 units), 2025 (31 units), and from January to May 2026 (26 units).

A representative from Innovation Automotive, which also handled the DFSK brand’s commercial vans in the UK, stated that the closure is “in no way a reflection upon Skywell.” Reports suggest that Skywell is now actively seeking a new distribution partner to continue its operations in the UK.

The company confirmed that all 16 Skywell dealerships across England and Wales have been informed about the shutdown. According to the spokesperson, Innovation Automotive’s closure stems from its owners’ inability to secure the significant financial backing required to stay competitive in the UK automotive sector. The parent company plans to redirect its focus toward the Middle Eastern market.

Questions remain regarding warranty coverage and spare parts availability for existing Skywell and DFSK owners. The spokesperson noted that there is currently a “significant” stockpile of Skywell spare parts, which the firm hopes to sell to a new owner within the coming weeks. This would enable the continuation of warranty support, though no agreement has yet been finalised.

The spokesperson further explained that while a “limited” quantity of spare components remains for DFSK vehicles, these will be “relocated,” leaving the brand’s future more uncertain. Warranties for the EC35 electric van will “no longer be available,” they added. It is understood that some former employees of Innovation Automotive are independently exploring ways to provide better support for DFSK vehicle owners.

All staff members at Innovation Automotive were officially made redundant and left the company on 30 June, including the spokesperson who provided information to Autocar.

The closure marks a pivotal development in the evolving landscape of Chinese car brands entering the UK. If Skywell fails to secure a new importer, it could become the first of the new wave of Chinese manufacturers to exit the market. While certain brands such as Chery have found relative success through models like the Jaecoo 7, others, including Great Wall Motor, have similarly faced difficulties in establishing a foothold.