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Car Distributor Ceases Trading in the UK After Eight Years Impacting 16 Dealerships
The closure leaves Skywell seeking a new UK distributor as 16 dealerships and warranty support remain in limbo, David Clark said.
Innovation Automotive has ceased operations in the UK after eight years, ending its role as distributor for Chinese electric vehicle brand Skywell. The closure followed the Hmicho family's decision to refocus on Middle East businesses.
According to the Society of Motor Manufacturers and Traders, Skywell registered 64 vehicles in June, its strongest performance since entering the UK in early 2025. Innovation Automotive had appointed 16 dealerships across England and Wales during 2025 and 2026.
David Clark, Skywell UK general manager, confirmed all remaining new vehicle stock was purchased and registered during June. He hopes to transfer parts inventory and warranty administration to a new operator in the coming weeks.
Addressing the transition, David Clark stated, "The closure of Innovation Automotive is in no way a reflection upon Skywell, who are now seeking an alternative distributor for the UK market." Skywell aims to maintain customer support.
This closure coincides with wider UK retail challenges, as major brands Quiz, Bennett, and Leading Labels recently entered administration. Additionally, Jones is closing stores following a restructuring plan approved by the High Court on July 1.