Chinese electric vehicle brand Skywell is currently in limbo following the sudden collapse of its official UK importer, Innovation Automotive.

The distributor ceased operations after its owners, the Middle East-based Hmicho family, decided to withdraw funding due to the high levels of continuous investment required to remain competitive in the crowded UK electric car market.

This development makes Skywell – a joint venture between Skyworth Group and the Nanjing Golden Dragon Bus Company – the first of the recent wave of incoming Chinese automotive brands to face a major operational setback in the UK.

In a statement, David Clark, Skywell UK general manager, 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 market’s required investment levels, and return to the Middle East with immediate effect.”

He added: “The closure of Innovation Automotive is in no way a reflection upon Skywell, who are now seeking an alternative distributor for the UK market.”

Following the closure, all Skywell vehicle stock has been registered or sold, with the manufacturer exploring a transfer of parts and warranty operations to support existing customers. The 16 UK dealerships have been notified.

Skywell debuted in the UK in May 2024, when the ⁠BE11 SUV was formally unveiled at the Everything Electric North expo in Harrogate. Official order books for the large electric SUV opened in November 2024 and first customer deliveries started March 2025. Earlier this year, the brand cut prices by over £5,000 for its Renault Scenic and Škoda Enyaq rival, bringing the starting price down to £31,990 while introducing a range of extra equipment and handling refinements.