Mahindra & Mahindra Ltd. (M&M) has signed a Memorandum of Understanding (MoU) with DBS Bank India to launch a first-of-its kind sustainability-linked dealer financing program to incentivise authorised dealers to adopt sustainable business practices by offering them favourable interest rates on loans for the purchase of passenger and commercial vehicles.

“The program framework, the first such one in the Indian automotive sector, clearly defines environmental performance criteria, enabling a dealership’s operations to be measured against a range of parameters, in accordance with M&M’s Green Dealership Program requirements,” M&M said.

These include the monitoring of greenhouse gas emissions and water consumption, renewable energy use, provisions for rainwater harvesting, responsible waste management, the availability of public Electric Vehicle (EV) charging facilities and even the number of eSUVs the dealerships sell, it added.

Nalinikanth Gollagunta, Chief Executive Officer – Automotive Division, M&M said, “As a company with a long-standing commitment to sustainability we very much see it as our responsibility to support India’s sustainability ambitions. The launch of this financing program 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.”

Divyesh Dalal, Managing Director and Country Head – Global Transaction Services, Corporate Banking – Financial Institutions and SMEs, DBS Bank India, said, “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.”

M&M’s authorised dealerships typically purchase vehicles from the manufacturer before selling them on to customers. Under the new structure of the DBS financing program, the dealerships can be ranked depending on how they score against the detailed ESG parameters, with commercial benefits attached to dealers that make progress on ESG criteria and sales targets. The metrics were jointly designed by M&M and financing partner DBS Bank India.

The initiative aligns with M&Ms wider decarbonisation push, with the company securing leadership position in 2026’s DJSI, S&P Global Sustainability Yearbook. It also aligns with the Government’s recent move to unveil more rigorous Nationally Determined Contribution (NDC) targets as part of its Paris Agreement commitment to attain net-zero emissions by 2070.