Mahindra, DBS Bank launch India’s first green dealer financing scheme

The ESG metrics had been collectively designed by Mahindra and DBS Bank India. 

Mahindra & Mahindra and DBS Bank India have signed a Memorandum of Understanding to launch India’s first sustainability-linked dealer financing programme within the automotive sector, providing authorised Mahindra sellers preferential rates of interest on automobile loans tied to their environmental efficiency.

Beneath the programme, sellers will probably be ranked in opposition to a set of ESG parameters drawn from Mahindra’s Green Dealership Programme. These embrace greenhouse fuel emissions monitoring, water consumption, renewable vitality use, rainwater harvesting, waste administration, availability of public EV charging services, and the amount of eSUVs bought. Sellers that meet outlined thresholds on these metrics — alongside gross sales targets — will obtain business advantages on loans used to buy passenger and business automobiles from the producer.

The ESG metrics had been collectively designed by Mahindra and DBS Bank India. The programme is structured to handle Scope 3 emissions — these generated throughout an organization’s worth chain relatively than immediately by the corporate itself — by drawing dealer networks into the broader decarbonisation effort.

Decarbonisation efforts

Nalinikanth Gollagunta, CEO of Mahindra’s Automotive Division, mentioned the programme would prolong the corporate’s decarbonisation efforts to its dealer community and assist India’s wider sustainability objectives. Divyesh Dalal, Managing Director and Nation Head of World Transaction Companies at DBS Bank India, described the initiative as offering sensible instruments to decarbonise the dealer community at scale.

The launch aligns with Mahindra’s place within the 2026 S&P World Sustainability Yearbook and India’s up to date Nationally Decided Contribution targets below the Paris Settlement, which commit the nation to net-zero emissions by 2070. DBS Bank India was named Finest Bank for Sustainable Finance in India by World Finance in 2024 and has been recognised as Finest Bank for Company Banking in India by Crisil Coalition Greenwich in each 2025 and 2026.

Revealed on Could 19, 2026