Mahindra & Mahindra and DBS Bank have launched India’s first sustainability-linked dealer financing program. The initiative supports Mahindra dealerships in adopting environmentally friendly practices while offering lower financing costs.
Announced in Mumbai on May 19, 2026, the program integrates sustainability with business growth in India’s automotive sector. Mahindra dealers using DBS Bank India’s financing for vehicle purchases can access lower interest rates by meeting specific environmental, social, and governance (ESG) standards.
This financing model is unique in India’s automotive sector as it links financial incentives to measurable sustainability outcomes. Dealers are evaluated through Mahindra’s Green Dealership Program, which assesses greenhouse gas emissions, water usage, renewable energy adoption, rainwater harvesting, waste management, and installation of public electric vehicle charging stations.
Dealerships will also be evaluated on electric SUV sales, supporting India’s transition to cleaner transportation.
Divyesh Dalal, Managing Director and Country Head – Global Transaction Services, Corporate Banking – Financial Institutions and SMEs, DBS Bank India, said, “DBS is proud to partner with Mahindra & Mahindra to turn green ambitions into reality. Our new financing program goes beyond the balance sheet, providing the practical tools needed to decarbonise their dealer network at scale. We have leveraged our cross-border expertise to customise this innovative solution that supports our client’s growth, while driving the transition to a net-zero future.”
Terence Yew Tiek Yong, Managing Director and Group Head of Corporate Sales & Solutioning, Global Transaction Services, DBS Bank, also shared, “DBS is proud to have partnered Mahindra & Mahindra in driving prominence of ESG among its dealers. DBS is supporting Mahindra & Mahindra by incentivising their dealer network to promote EV adoption in the community and enable higher ESG standards of operations and investment. We are inspired by the active collaboration across Mahindra & Mahindra’s organisational functions, from Production to Sustainability, from Channels to Finance, to take the wheel in climate adaptation.”
Nalinikanth Gollagunta, CEO of Mahindra’s Automotive Division, emphasized the need to extend sustainability efforts beyond manufacturing. He noted that India is at a pivotal stage in its sustainability journey and that businesses are essential to achieving national climate goals. He added that the new financing plan will help Mahindra reduce Scope 3 emissions by involving dealerships in its broader decarbonisation strategy.
DBS Bank India described the collaboration as a practical step toward enabling businesses to transition to greener operations. Divyesh Dalal, Managing Director and Country Head of Global Transaction Services at DBS Bank India, stated that the bank aims to support Mahindra’s dealer network with financing tools to accelerate large-scale adoption of sustainability.
Mahindra and DBS Bank India jointly developed the program. Dealers will be ranked on ESG performance and sustainability progress, with higher scores earning financial rewards. This provides a clear incentive for dealers to improve their environmental impact.
The launch supports Mahindra’s broader sustainability goals and aligns with India’s commitment to achieve net-zero emissions by 2070 under the Paris Agreement. Mahindra has been recognized for ESG leadership through its inclusion in the 2026 Dow Jones Sustainability Index and the S&P Global Sustainability Yearbook.
For DBS, the partnership further strengthens its position in sustainable finance. The bank has received global and domestic recognition for sustainable banking and digital innovation, including awards for corporate banking excellence and sustainable finance leadership in India.
As sustainability becomes central to corporate strategy, the Mahindra-DBS partnership may set a benchmark for collaboration between financial institutions and manufacturers to advance greener business practices across supply chains and dealer networks in India.
