Mahindra & Mahindra has entered into a strategic partnership with DBS Bank India to introduce India’s first sustainability-linked dealer financing program, aimed at accelerating environmentally responsible practices across its automotive dealership network.
The initiative, announced on May 19, 2026, is designed to incentivize authorised Mahindra dealers to adopt greener business operations by offering preferential interest rates on vehicle loans based on their environmental, social, and governance (ESG) performance.
Mahindra & Mahindra stated that the program will evaluate dealerships on key sustainability indicators, including greenhouse gas emissions, water consumption, renewable energy usage, waste management practices, rainwater harvesting systems, EV charging infrastructure, and sales of electric SUVs.
The framework, developed jointly by Mahindra and DBS Bank India, is the first of its kind in the Indian automotive sector and aligns with Mahindra’s broader Green Dealership Program. Dealers will be ranked according to their ESG performance, with financial benefits tied to improvements and sustainability milestones.
Nalinikanth Gollagunta, CEO of Mahindra’s Automotive Division, said the initiative comes at a crucial time in India’s sustainability journey. He emphasized that the program will help expand the company’s decarbonisation efforts by integrating dealerships into its broader Scope 3 emissions reduction strategy.
From the banking side, DBS Bank India highlighted that the program goes beyond traditional financing by providing structured incentives to decarbonise dealership operations at scale. The bank also noted its expertise in cross-border sustainable finance solutions as a key enabler of the partnership.
Industry observers see the initiative as a significant step in embedding ESG principles into automotive retail financing, potentially setting a benchmark for other manufacturers in India and beyond.
The program also supports India’s broader climate goals, including its commitment to achieving net-zero emissions by 2070 under the Paris Agreement framework. It complements Mahindra’s ongoing sustainability efforts, including its leadership in global ESG indices and its focus on electric mobility expansion.
Mahindra, founded in 1945, operates across multiple sectors including automotive, farm equipment, financial services, logistics, and renewable energy, with a presence in over 100 countries and a workforce of more than 324,000 employees.
With this collaboration, Mahindra aims to strengthen its sustainability ecosystem while encouraging dealerships to actively participate in the transition toward greener mobility and responsible business practices.
