Mahindra & Mahindra (M&M) has partnered with DBS Bank India to introduce India’s first sustainability-linked dealer financing program in the automotive sector. The initiative is designed to encourage authorised Mahindra dealerships to adopt sustainable business practices through preferential interest rates on vehicle financing.
The program links financing benefits to ESG performance parameters aligned with M&M’s Green Dealership Program. Dealers will be evaluated on criteria including greenhouse gas emissions, water usage, renewable energy adoption, rainwater harvesting, waste management practices, availability of public EV charging infrastructure, and sales of electric SUVs.
Nalinikanth Gollagunta, Chief Executive Officer – Automotive Division, Mahindra & Mahindra Ltd., said, “This sustainability-linked financing initiative reflects our commitment to integrating sustainability across the automotive value chain. By bringing dealerships into our decarbonisation journey, we aim to accelerate ESG adoption and drive meaningful reduction in Scope 3 emissions.”
Divyesh Dalal, Managing Director and Country Head – Global Transaction Services, Corporate Banking – Financial Institutions and SMEs, DBS Bank India, said, “Our partnership with Mahindra & Mahindra demonstrates how innovative financing can support sustainable growth. The program incentivises dealers to strengthen ESG standards while enabling long-term business resilience.”
Under the structure, dealerships achieving stronger ESG and sales performance will gain access to improved financing benefits. The initiative also aligns with India’s broader net-zero ambitions and M&M’s ongoing sustainability leadership efforts.
