A car distributor has closed its operations in the UK after eight years, leaving a Chinese car brand looking for new representation.
Innovation Automotive, which had represented the Chinese electric vehicle brand Skywell since 2021, has ceased trading.
This occurred after its owners, the Hmicho family, decided to return their focus to businesses in the Middle East.
David Clark, Skywell UK general manager, confirmed the distributor's closure and said the decision reflected the increasing investment required to compete in the UK.
The Skywell UK website is now live 🎉
Our all-new website (https://t.co/r6i2ckoPDH) is now live and ready to support our customers; providing easy access to vehicle information and services, including test drives, brochure requests and aftersales support. pic.twitter.com/mSaYa7N9zV— Innovation Automotive (@IA_EVs) October 31, 2024
Innovation Automotive appointed 16 Skywell dealerships across England and Wales during 2025 and 2026, AM-online reports .
Clark said all had been informed of the company's closure.
Innovation Automotive ceases operations in the UK
Companies House states that Innovation Automotive was incorporated in August 2018 and was previously known as LZ Trading Ltd and DFSK Finance Ltd.
According to the Society of Motor Manufacturers and Traders (SMMT), Skywell registered 64 vehicles in June 2026, its strongest performance since entering the UK in early 2025.
Innovation Automotive also distributed DFSK electric vans in the UK.
Future support for owners is yet to be confirmed, Motor Trade News reports.
Discussing Innovation Automotive's ceasing of operations in the UK, David Clark 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."
He added: "I would like to take the opportunity to recognise the dedication, integrity and professionalism of my past and present colleagues who worked tirelessly to support Skywell’s business vision.”
Clark also confirmed that all remaining new Skywell vehicle stock had been purchased and registered during June.
Innovation Automotive retains a significant stock of Skywell parts, which Clark said he hopes will transfer to a new operator in the coming weeks to ensure continued support for existing customers.
He said: "The expectation is that the warranty administration will also transfer to a new party, again, so that ongoing support can be offered to UK owners.
"While the terms of these agreements haven't been finalised yet, I hope to be able to confirm this shortly."
Other UK companies that have closed or entered administration/liquidation in 2026
It has been a tough year for the UK high street, with several other retailers entering administration or liquidation and others announcing widespread store closures.
Major high street brands LK Bennett , Claire's , and Quiz have been forced to close all their remaining stores after falling into administration.
UK fashion retailer Leading Labels is also set to close its remaining 15 stores after falling into liquidation.
TG Jones will also be closing 150 stores across the UK as part of a "restructuring" plan approved by the High Court on July 1.
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It hasn't all been bad news for the UK high street, with several major brands announcing new store openings for 2026, including Aldi, M&S, and Superdrug.
Plus-size clothing brand Evans also returned to the UK high street recently after closing all its stores and concessions in December 2020.
Which company/store closure in 2026 has impacted you the most? Let us know in the comments below.
