Mumbai-based auto giant Mahindra & Mahindra has teamed up with DBS Bank India to launch what they are calling India’s first sustainability-linked dealer financing program for the automotive sector. In simpler words: dealerships that behave better environmentally could now enjoy lower interest rates while stocking up on Mahindra SUVs and commercial vehicles.
Yes, your local dealership’s rainwater harvesting system may now be just as important as how many Thars are parked outside.
The newly announced initiative aims to encourage Mahindra’s authorised dealers to adopt greener operations through clearly defined ESG (Environmental, Social and Governance) parameters. Dealers meeting sustainability benchmarks will be rewarded with preferential financing rates on vehicle loans from DBS Bank India.
The framework under the program measures dealerships on a wide range of environmental metrics. These include greenhouse gas emissions, renewable energy usage, water consumption, waste management practices, rainwater harvesting systems, public EV charging infrastructure, and even the number of electric SUVs sold by the dealership.
Essentially, dealerships are now being evaluated not just on horsepower, but also on solar power.
Nalinikanth Gollagunta, CEO – Automotive Division at Mahindra & Mahindra, said the partnership comes at a critical stage in India’s sustainability journey. He added that the financing initiative would help the company expand its decarbonisation efforts while also reducing Scope 3 emissions by bringing dealerships into the broader sustainability ecosystem.
DBS Bank India also highlighted that the program is designed to go “beyond the balance sheet.” Divyesh Dalal, Managing Director and Country Head – Global Transaction Services at DBS Bank India, stated that the financing model provides practical tools for dealerships to decarbonise operations while continuing business growth.
Meanwhile, Terence Yew Tiek Yong, Managing Director and Group Head of Corporate Sales & Solutioning at DBS Bank, noted that the collaboration aims to promote EV adoption and improve ESG standards across Mahindra’s dealer network.
Under the new financing structure, dealerships purchasing vehicles from Mahindra before retailing them to customers will be ranked based on their ESG performance. Better sustainability scores and stronger EV-related targets could unlock commercial benefits and improved financing terms.
The ESG metrics were jointly developed by Mahindra and DBS Bank India, making the initiative one of the more structured green financing models seen in India’s automotive retail sector so far.
The move also fits neatly into Mahindra’s larger sustainability ambitions. The company recently secured a leadership position in the 2026 DJSI S&P Global Sustainability Yearbook and continues to push aggressive decarbonisation goals in line with India’s net-zero 2070 commitment under the Paris Agreement.
For DBS, sustainable finance is becoming a major focus area globally and in India. The bank was recognised as the “Best Bank for Sustainable Finance – India” by Global Finance in 2024 and has also earned consistent recognition for corporate banking excellence in India.
With automakers increasingly talking about carbon footprints alongside torque figures, the Indian dealership business may be entering a new era — one where selling EVs, recycling water and installing solar panels could become as important as offering festive discounts and free keychains.
