Mahindra, DBS Bank India Launch Sustainability-Linked Dealer Financing Programme

Mahindra & Mahindra and DBS Bank India have launched what they describe as India’s first sustainability-linked dealer financing programme for automotive dealerships, aimed at encouraging dealers to adopt environmentally focused operational practices.

Under the programme, authorised Mahindra dealerships financing purchases of passenger and commercial vehicles through DBS Bank India will be eligible for preferential interest rates linked to their environmental, social and governance (ESG) performance.

The financing framework incorporates a set of sustainability parameters aligned with Mahindra’s Green Dealership Programme. These include greenhouse gas emissions monitoring, renewable energy usage, water conservation measures, rainwater harvesting infrastructure, waste management systems, public EV charging facilities and the number of electric SUVs sold by dealerships.

Dealerships will be assessed and ranked based on these metrics, with financing benefits tied to improvements in ESG performance and sales targets. The evaluation framework was jointly designed by Mahindra and DBS Bank India.

“The launch of this financing programme will enable us to step up the breadth of our decarbonisation efforts, bring our dealerships into the fold and drive a reduction in Scope 3 emissions,” said Nalinikanth Gollagunta, CEO, Automotive Division, Mahindra & Mahindra.

Mahindra said the initiative aligns with its wider decarbonisation strategy and India’s broader climate targets under the Paris Agreement framework, including the country’s net-zero emissions goal for 2070.