Chinese EV Maker Skywell Faces UK Market Exit as Importer Ceases Trading

Chinese electric vehicle manufacturer Skywell is at risk of becoming another casualty in the UK market, with its official importer, Innovation Automotive, having ceased trading.

The closure of Innovation Automotive, which handled the Skywell brand in Britain, leaves the Skyworth Group-owned carmaker in an uncertain position less than two years after its launch in the UK. All 16 existing Skywell dealerships across England and Wales have been informed of the importer's closure.

Despite the operational challenges, Skywell recorded a significant surge in registrations in June, with an 800% increase compared to the previous month. This spike is attributed to dealerships pre-registering remaining stock. Since its market entry in 2024, Skywell has delivered a total of 127 electric cars, with 64 of those registrations occurring in June alone.

Skywell had ambitious plans upon its 2024 launch, aiming to establish 50 dealerships by the end of 2025. The future of the 16 currently operating dealerships remains unclear.

The brand's sole model available in the UK is the BE11 SUV, priced at £31,990. Skywell has stated it is actively seeking a new distributor and hopes to finalize an appointment within weeks to reassure existing customers and ensure ongoing support.

This situation mirrors the exit of Great Wall Motors' Ora brand from the UK market in April, potentially marking Skywell as the second Chinese automotive brand to withdraw in recent months.

Skywell describes itself as a "trailblazing brand of new energy vehicles owned by the multinational consumer electronics brand Skyworth." However, its presence in the UK appears to be diminishing rapidly following the abrupt closure of its importer, attributed to insufficient investment from its Middle East-based parent company to compete in the highly competitive automotive sector.

Skywell UK general manager David Clark indicated that the importer's closure is not a reflection on the Skywell brand itself and expressed confidence that warranty administration would transfer to a new entity, ensuring continued support for UK owners.

All remaining new BE11 stock was acquired and registered by V12 Sports and Classics in June and is available on their website. Parts for the BE11 are also expected to be transferred to the new distributor.

Should Skywell fail to secure a new distributor, it could face a complete exit from the UK market, leaving its existing owners without aftersales support, similar to the predicament faced by owners of the defunct American EV brand Fisker. Fisker filed for bankruptcy in June 2024 after failing to meet sales targets for its Ocean SUV. Between December 2023 and June 2024, 419 Fisker Ocean EVs were registered in the UK.