Innovation Automotive closes due to high level of investment required to compete in UK market
Skywell importer Innovation Automotive has abruptly closed its doors.
Skywell launched in the UK with the BE11 SUV in late 2024, but failed to generate significant demand. June 2026 was its most successful month yet, with 64 registrations – one more than it had managed throughout 2024 (6 registrations), 2025 (31) and from January-May 2026 (26) combined.
A spokesperson for Innovation Automotive, which also sells vans from the DFSK brand in the UK, told Autocar the closure is “in no way a reflection upon Skywell”. Autocar understands the Chinese brand is actively looking for a new partner to continue selling cars in the UK.
All 16 Skywell dealers across England and Wales have been notified of the closure, the spokesperson said. They attributed Innovation Automotive’s closure to its owners’ inability to provide the investment required to compete in the UK market. Its owner will refocus its efforts on the Middle East.
It remains to be seen what will come of warranties and parts supply for Skywell and DFSK vehicles. The spokesperson said there is a “significant” supply of spares for Skywells which the firm hopes to sell to a new owner in the coming weeks, which should allow warranty support to continue. A deal has yet to be finalised, however.
They added that there is a “limited” stock of parts for DFSKs which will be “relocated”, but its future is in greater doubt. Warranties for the EC35 electric van will “no longer be available”, the spokesperson said. Autocar understands individuals from the former Innovation Automotive business are working independently for a better outcome for DFSK owners.
All of Innovation Automotive’s staff were given notice of redundancy and left on 30 June – including the spokesperson Autocar spoke with.
The closure of Innovation Automotive is a significant moment: should Skywell be unable to find a new importer, it will be the first domino to fall in the new wave of Chinese brands. Alhough some have found success – most notably Chery with the Jaecoo 7 – others, such as Great Wall Motor, have too struggled to generate traction.
