Opportunities for smaller dealers as China's Skywell reaches the UK car market

Car buyers’ choice is expanding further in the UK as a new electric vehicle brand, Skywell, begins sales here.

Skywell is part of China's electronics giant Skyworth Group. Its UK licenced distributor Innovation Automotive in Cirencester, which also imports DFSK light commercial vehicles, is busy building a footprint for both.

DFSK had been offered through direct sales since Innovation Automotive’s creation in 2021 by Samir Hmicho, a businessman from the Middle East with trading relationships with some Chinese OEMs.

Yet with Skywell’s arrival the distribution company is building a retailer network which can be proactive in finding EV buyers and which will provide the right aftercare to keep them happy.

And Innovation Automotive will be at Automotive Management Live on November 13 at Birmingham NEC, putting Skywell squarely in front of UK motor retailers who’ll want to know more about the opportunity.

In a recent interview, David Clark, the general manager of Innovation Automotive, provided an in-depth look at the company's plans to disrupt the status quo.

The dealer recruitment process has been a key focus for Innovation Automotive since early this year. Clark said the company has had very positive reactions from dealers, both independent operators and smaller dealer groups, which are its primary target partners.

"We're not in talks with the big national dealer groups right now," he said. "We have focused our attention on established local dealers who are well-respected in their communities and can provide a great customer experience."

The ambition is to appoint 20 to 25 dealerships to begin to get the Skywell name out there, and then build it up further to accommodate increasing sales.

"We're not in a rush," he said. "We want to make sure we get the right partners on board who are aligned with our vision."

A key part of that vision is a focus on aftersales support and customer experience, with strong support from Innovation Automotive.

"That's where we can really differentiate ourselves," said Clark, who has previously worked both in dealerships and in OEMs including MG Motor UK and Tevva Electric Trucks. "Dealers can pick up the phone and talk directly to our technical team or sales team to get answers quickly. We're not going to make them jump through hoops."

Innovation Automotive is also offering dealers a very attractive proposition in terms of the financial model. "Our set-up costs for dealers are quite low compared to other OEMs," Clark said.

"We're not stipulating a lot of expensive requirements around things like showroom branding or workshop equipment. We just want the basics to deliver a good customer experience."

That customer experience will be anchored by the vehicles themselves, which Clark believes offer exceptional value. The initial Skywell model, the BE11 large SUV, will be available in a single well-equipped specification with two battery size options – an 86kWh battery, which promises a range of 306 miles, or a 72kWh unit with a 248-mile range.

It has a seven-year/100,000 mile warranty, to help give buyers confidence in this new brand, and given that there are few electric rivals in this segment it should be a good opportunity. Buyers won’t be short of space

"We're not overwhelming customers with complexity," Clark said. "The BE11 comes very well-specced as standard, with features that you'd typically find on higher-trim models from established brands."

The suite of driver comforts and assistance systems includes a large central touchscreen, front and rear parking sensors, a 360-degree camera system, panoramic roof, wireless phone connectivity and charging, plus a German-engineered Metz eight-speaker sound system.

Clark promised buyers will find it "incredibly good value."

From £36,995 for the smaller battery SUV to £39,995 for the longer range electric car, it is positioned well to compete with large SUV rivals. He believes this combination of quality, features and affordability will be a major draw for both retail and fleet customers.

"We know the EV market is still predominantly business-focused, so we're working hard to ensure we can be competitive on things like personal contract hire and salary sacrifice schemes."

Beyond the BE11, Innovation Automotive has ambitious plans to rapidly expand its product portfolio. At the Paris Motor Show Skywell’s global chief executive Steve Huang unveiled a hatchback designed and built for European drivers, the Skywell Q (pictured), as well as a large van.

Clark revealed Innovation Automotive will introduce a total of seven new models across the Skywell and DFSK brands over the next 18-24 months, spanning both passenger cars and commercial vehicles.

"We're not just talking about Skywell and DFSK though," Clark said. "We're also in discussions with some other EV brands that have really innovative technology. I can't share specifics yet, but let's just say we're looking to bring some game-changing products to the UK market."

This diversified product strategy will be supported by a multi-faceted marketing approach. Innovation Automotive is developing a mix of PR, digital marketing, and experiential events to build awareness and drive customer interest, such as at the recent Fleet and Mobility Live exhibition and the forthcoming Automotive Management Live to showcase the first batch of Skywell vehicles.

"We know we're not a household name like some of the established brands, so we need to be really smart and targeted with our marketing," said Liam Campbell, Innovation Automotive's head of marketing.