A Chinese car brand could be forced to exit the UK market after its importer abruptly ceased operations with immediate effect.
Skywell dealers have been impacted by the closure of Innovation Automotive, which has ceased trading, impacting the future of the Chinese automaker.
Innovation Automotive announced that it would be ending operations, pointing to a need for huge investments to compete in the UK car market.
The company appointed 16 Skywell dealers across England and Wales over the last two years, including in Devon, London, Oxfordshire and Wales.
Skywell currently only sells the BE11 in the UK and has slowly seen sales increase in recent months, with 64 registrations in June.
A spokesperson for Innovation Automotive said its closure was "in no way a reflection upon Skywell", Autocar reported.
The Chinese car brand is understood to be "actively looking" for a new partner to continue selling cars across the country.
Its website shows the original Skywell BE11 mid-size SUV retailing from £23,995, although this is limited to dealer stock only.
Skywell dealers have been left with a serious headache after the closure of Innovation Automotive
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It also has the 2026 model year variant of the BE11, which starts at £31,990 for the Standard Range, providing 248 miles (combined) in range with a 72kWh battery.
The Long Range model has rapid charging times of 45 minutes, an 86kWh battery and a maximum of 401 city miles for £34,990.
Skywell is also teasing the impending release of the Q hatchback, 233 commercial vehicle and the Skyhome saloon.
David Clark, general manager of Innovate Automotive, told Car Dealer Magazine that the UK car market required "continuous, significant investment".
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Skywell reported its best-ever month for sales in June
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He added that the Hmicho family, which owns Innovation Automotive, took the decision to close its UK chapter as it was "unable to meet the UK market's required investment levels".
Innovation Automotive has operated in the UK for the last five years, with plans for the company to return to the Middle East, where it had previously found success.
Mr Clark confirmed that new car stock had been sold to V12 Sports and Classics last month, which showed stock of Skywell BE11 models.
Data from the Society of Motor Manufacturers and Traders shows that Skywell has sold 90 vehicles in the UK this year.
The Skywell BE11 is the brand's UK flagship electric model
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This represents an impressive 718 per cent growth in sales year-on-year, the second-highest growth of any manufacturer, only behind Leapmotor.
Skywell recently introduced the £3,750 EV Switch Incentive to help motorists get behind the wheel of a new EV, similar to the Government's Electric Car Grant.
Customers can also benefit from a £500 Test Drive Voucher, in addition to a £500 contribution towards the first year of insurance through partner Adrian Flux.
Sharon Ryan, Skywell's Dealer Operations Coordinator, said: "The fantastic growth we have achieved is a reflection of the strength of our retailer network. Our retailer teams continue to embrace every opportunity, engage customers with enthusiasm, and represent the brand with pride."