Mahindra and DBS Launch Green Dealer Financing in India

Mahindra & Mahindra has partnered with DBS Bank India to launch India’s first sustainability-linked dealer financing program for the automobile sector. Through this initiative, Mahindra dealers following eco-friendly business practices will get better interest rates on loans for passenger and commercial vehicles. The company says the program is aimed at encouraging dealerships to move towards cleaner and more sustainable operations.

ESG Ratings for Dealerships

Under this new financing program, Mahindra dealerships will be evaluated on different ESG (Environmental, Social and Governance) parameters under the company’s Green Dealership Program. These include greenhouse gas emissions, water usage, renewable energy adoption, rainwater harvesting, waste management systems, EV charging facilities and sales of electric SUVs. Dealers performing better in these areas will receive financial and commercial benefits.

Main Highlights of the New Financing Program

• Better loan interest rates for eco-friendly dealerships

• Focus on reducing emissions and water consumption

• Encouragement for renewable energy usage

• Support for rainwater harvesting and proper waste management

• Promotion of public EV charging stations at dealerships

• Extra benefits linked to electric SUV sales and ESG performance

Partnership Focuses on Green Mobility

Mahindra said the new initiative will help strengthen its decarbonisation plans and reduce Scope 3 emissions through its dealership network. DBS Bank India also shared that the partnership will help dealers adopt greener business practices while supporting India’s long-term net-zero goals. The financing system will rank dealerships based on sustainability performance and ESG targets jointly created by Mahindra and DBS Bank India.

Initiative Aligned with India’s Net-Zero Goals

The sustainability-linked financing program is also aligned with the Indian government’s target to achieve net-zero emissions by 2070 under the Paris Agreement. Mahindra recently secured a leadership position in the 2026 DJSI and S&P Global Sustainability Yearbook, while DBS Bank India continues to focus strongly on sustainable finance and climate-related initiatives.