5 days ago
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Mahindra & Mahindra Ltd. (M&M) has signed a Memorandum of Understanding (MoU) with DBS Bank India to motorboat a first-of-its benignant sustainability-linked trader financing programme to incentivise authorised dealers to follow sustainable concern practices by offering them favourable involvement rates connected loans for the acquisition of rider and commercialized vehicles.
“The programme framework, the archetypal specified 1 successful the Indian automotive sector, clearly defines biology show criteria, enabling a dealership’s operations to beryllium measured against a scope of parameters, successful accordance with M&M’s Green Dealership Program requirements,” M&M said.
These see the monitoring of greenhouse state emissions and h2o consumption, renewable vigor use, provisions for rainwater harvesting, liable discarded management, the availability of nationalist Electric Vehicle (EV) charging facilities and adjacent the fig of eSUVs the dealerships sell, it added.
Nalinikanth Gollagunta, Chief Executive Officer – Automotive Division, M&M said, “As a institution with a long-standing committedness to sustainability we precise overmuch spot it arsenic our work to enactment India’s sustainability ambitions. The motorboat of this financing programme volition alteration america to measurement up the breadth of our decarbonisation efforts, bring our dealerships into the fold and thrust a simplification successful Scope 3 emissions.”
Divyesh Dalal, Managing Director and Country Head – Global Transaction Services, Corporate Banking – Financial Institutions and SMEs, DBS Bank India, said, “Our caller financing programme goes beyond the equilibrium sheet, providing the applicable tools needed to decarbonise their trader web astatine scale. We person leveraged our cross-border expertise to customise this innovative solution that supports our client’s growth, portion driving the modulation to a net-zero future.”
M&M’s authorised dealerships typically acquisition vehicles from the shaper earlier selling them connected to customers. Under the caller operation of the DBS financing program, the dealerships tin beryllium ranked depending connected however they people against the elaborate ESG parameters, with commercialized benefits attached to dealers that marque advancement connected ESG criteria and income targets. The metrics were jointly designed by M&M and financing spouse DBS Bank India.
The inaugural aligns with M&Ms wider decarbonisation push, with the institution securing enactment presumption successful 2026’s DJSI, S&P Global Sustainability Yearbook. It besides aligns with the Government’s caller determination to unveil much rigorous Nationally Determined Contribution (NDC) targets arsenic portion of its Paris Agreement committedness to attain net-zero emissions by 2070.
