Mia Dynamics Motors pivots: Terminates agreement with Mayer Group and shifts to direct distribution in Israel

A strategic move in the domestic market: Mia Dynamics Motors is taking full control of its distribution and service network in Israel. The company announced it will not renew its distribution agreement with Mayer Group, aiming to strengthen customer relations and increase its share

Mia Dynamics Motors announced the termination of its distribution agreement in Israel with Mayer Group, and will transition to a direct sales and service model. The move, expected to be completed within 12 months, is part of the company's global strategy to deepen direct operations in key markets, similar to steps taken in the U.S. and Europe.

Mia Dynamics Motors Ltd. is executing a significant strategic shift on its home turf. The company reported to the TASE that its subsidiary, Mia Dynamics Ltd., notified the current distributor of its products in Israel, Mayer Electric Utilities (2015) Ltd. of Mayer Group, on September 17, 2026, of its decision not to renew the distribution agreement between the parties and to transition to a direct distribution model.

The decision marks the end of an era during which the company relied on the distribution arm of Mayer Group, considered one of the oldest and strongest players in the Israeli automotive market. Now, Mia Dynamics seeks to take the reins and manage the entire value chain directly with the end customer — from marketing and sales to providing service and support.

According to the terms of the existing agreement, the transition will take place within a period not exceeding 12 months from the date of notice. However, the filing noted that Mia Dynamics approached Mayer Group with a request to shorten the transition period as much as possible, a move indicating the company's desire to complete the process quickly. Both parties, according to the report, will work together during the transition period to ensure full operational continuity, including the functioning of sales, service, and support operations for existing and new customers, to prevent disruptions and preserve brand reputation.

The company stated that the move to a direct distribution model is not a localized tactical move, but part of a broader global strategy. The ultimate goal is to deepen the company's direct operations in key target markets worldwide. In this context, the step in Israel joins similar moves Mia Dynamics is already executing internationally, including establishing operations and a service center in Los Angeles and expanding its operational infrastructure in Europe.

Company management estimates that transitioning to direct operations has the potential to yield several material benefits. First, it will enable strengthening and deepening direct relationships with the customer base, without third-party distributor mediation. Second, it will give the company direct control and management over sales and service networks, allowing for greater flexibility and adaptation to market needs. Third, and no less important financially, the move is expected to increase the company's share of the value created from the sale of its products — namely, increasing profit margins by eliminating the distributor's commission. The company is expected to update the investing public on material developments as required by law.