TCS Acquires Porsche's IT Unit MHP for €320M, Lands €1.25B AI-Powered Mobility Contract

India's TCS to buy Porsche's IT unit for enterprise value of $373 million

Aug 24 (Reuters) - India's top IT services firm, TCS (TCS.NS), opens new tab, said on Monday it would acquire Porsche's (PSHG_p.DE), opens new tab IT division MHP for an enterprise value of €320 million ($373.25 million). In a five-year deal ⁠tied to the acquisition, Porsche has committed €1.25 billion to TCS and the unit for services aimed at deploying AI across its engineering, manufacturing, operations ⁠and customer experience, as well as developing next-generation automotive technology and software-defined ⁠mobility platforms. MHP is an automotive and industrial consulting firm ⁠which specializes in business consulting and software-defined ⁠mobility. ($1 = 0.8573 euros) Reporting by Abhirami G in Bengaluru; Editing by Mrigank Dhaniwala Our Standards: The Thomson Reuters Trust Principles., opens new tab

TCS buys Porsche's MHP for €320m and lands a €1.25bn contract with it

The €320m sale of MHP comes with a €1.25bn services commitment attached, and 4,500 consultants changing employer. Tata Consultancy Services is buying MHP, the management and IT consultancy Porsche has owned for years, for €320m, and signing a five-year engagement with the carmaker worth €1.25bn on top of it. The two halves are what make the deal worth reading, because Porsche is simultaneously disposing of an asset and committing to buy back a version of what it produced from a firm rebuilding itself around deployed AI engineers. MHP is a substantial business rather than a captive department. It employs about 4,500 people, generated €742mn of revenue in 2025, and serves more than 300 clients across automotive and industrial sectors, with practices spanning SAP implementation, manufacturing digitalisation, and software-defined mobility. All 4,500 employees move to TCS when the transaction closes, which both companies expect within three to four months. Porsche will remain a customer rather than an owner, and TCS will set up a dedicated centre of excellence for the carmaker. "This partnership brings together TCS' capabilities in AI, engineering, technology and business transformation with MHP's strong automotive consulting expertise," said K Krithivasan, the Indian firm's chief executive. Porsche's chief executive Michael Leiters framed it as combining the carmaker's domain knowledge with outside digital capability to strengthen its innovative power. The commercial logic on Porsche's side is less about innovation than about a balance sheet under pressure. The disposal is part of a broader turnaround programme at a company squeezed by weak Chinese demand, a costly retreat from its electrification timetable, and tariffs on cars it exports to the United States. Selling a profitable consultancy and signing a long-term services contract converts a fixed cost base into a variable one, which is a standard move for a manufacturer trying to shrink without losing capability. Whether it also loses institutional knowledge is the part that only becomes visible in a few years. The Indian IT sector has been buying European consultancies for precisely this reason, since the constraint on growth is no longer engineering capacity but proximity to the client and familiarity with how European industry actually procures. MHP supplies both in a single transaction. For TCS, the appeal is the client list as much as the technology. Manufacturing accounted for 8.7% of its revenue in the first quarter of its current financial year, and MHP brings 300 industrial and automotive customers along with a European delivery footprint that Indian IT firms have historically found harder to build than their American ones. Porsche also becomes a marquee logo, which matters in a services market where reference accounts do a lot of selling. TCS has been reshaping itself for exactly this kind of work, hiring thousands of engineers to sit inside customer organisations rather than delivering from a distance. The underlying problem the deal is aimed at is genuine. European carmakers have spent five years discovering that they are software companies with factories attached, and most of them have been poor at it, with even basic questions like how long a software-defined car should be supported still unresolved across the industry. Volkswagen Group, which controls Porsche, has been through a particularly expensive version of that lesson with its Cariad software division. Outsourcing to a specialist is the alternative strategy, and this deal is a fairly clear statement about which of the two Porsche now prefers. It also lands while the wider European automotive sector looks for ways to redeploy engineering capacity, with several manufacturers pivoting towards defence work as electric vehicle demand disappoints and military budgets expand. The staff is the variable nobody controls. Consultancies are worth what their people are worth, and 4,500 of them are now being told they work for a company headquartered in Mumbai rather than Ludwigsburg, at a moment when European technology talent has plenty of alternatives. Neither company has said what the €1.25bn buys in practical terms, or which systems the centre of excellence will work on first. The figure is a commitment to spend rather than a description of anything yet built.

TCS to acquire Porsche IT unit MHP for €320 million

Tata Consultancy Services will acquire Porsche AG's IT consulting subsidiary MHP for an enterprise value of €320 million. The acquisition is part of a wider strategic partnership that includes a five-year, €1.25 billion deal to deploy artificial intelligence across Porsche's engineering, manufacturing, operations and customer experience businesses. Tata Consultancy Services (TCS) is set to acquire Porsche AG's management and IT consulting subsidiary MHP Management- und IT-Beratung GmbH for an enterprise value of €320 million. The acquisition, approved by the board of TCS Netherlands, a wholly owned subsidiary of TCS, involves the purchase of 100% equity in MHP, which is a subsidiary of Porsche. The transaction is subject to regulatory approvals and other conditions precedent and is expected to be completed within three to four months. Also read: TCS secures €1.25 billion five-year strategic deal with Porsche TCS announced a strategic partnership with Porsche AG to enable artificial intelligence services across the German luxury carmaker's mobility value chain, with the Indian IT services major set to establish a dedicated AI Mobility Centre of Excellence and acquire Porsche's IT consulting subsidiary MHP. MHP, which employs around 4,500 people and reported turnover of €742 million in calendar year 2025, specialises in business consulting, digital transformation, artificial intelligence, SAP transformation, manufacturing digitalisation and software-defined mobility. The two companies will also work to embed AI across intelligent manufacturing and operations, engineering and customer experience, combining Porsche's automotive engineering and brand experience with TCS' technology and product engineering capabilities. Speaking on the deal, K. Krithivasan, CEO and Managing Director, Tata Consultancy Services, said, "As AI, software, and data redefine the automotive industry, this partnership brings together TCS' capabilities in AI, engineering, technology and business transformation with MHP's strong automotive consulting expertise. Together, we will industrialize AI at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future." Porsche CEO Michael Leiters said the transfer of MHP to TCS was part of the company's strategy to focus on its core business, while gaining TCS as a strategic technology partner. As part of the broader partnership, Porsche has signed a five-year strategic deal with MHP and TCS worth €1.25 billion. The partnership will focus on industrialising AI across Porsche's engineering, manufacturing, operations, customer experience and enterprise transformation initiatives, while also delivering next-generation automotive technology services and software-defined mobility platforms. TCS will also establish a dedicated AI Mobility Centre of Excellence for Porsche to drive innovation across manufacturing, engineering, operations and customer experience, according to the company's press release. The acquisition is expected to strengthen TCS' presence in Germany and expand its reach among European automotive and industrial customers. MHP has operations in Germany, Romania, the UK, the US, India and Mexico.

TCS to buy Porsche's IT unit for enterprise value of $373 million

In a five-year deal tied to the acquisition, Porsche has committed €1.25 ⁠billion to TCS and the unit for ⁠services aimed at deploying AI across its engineering, manufacturing, operations and customer experience, as well as developing next-generation automotive technology and software-defined mobility platforms. India's top IT services firm, TCS , said on Monday it would acquire Porsche's IT division MHP ⁠for ⁠an enterprise value of €320 million ($373.25 million). In a five-year deal tied to the acquisition, Porsche has committed €1.25 ⁠billion to TCS and the unit for ⁠services aimed at deploying AI across its engineering, manufacturing, operations and customer experience, as well as developing next-generation automotive technology and software-defined mobility platforms. MHP is an automotive ⁠and industrial consulting firm which specialises in business consulting and software-defined mobility.

TCS and Porsche AG Partner to Accelerate the Future of AI-Powered Mobility

As part of the strategic deal, TCS will set up an AI Mobility Centre of Excellence for the auto major and acquire Porsche's IT consulting subsidiary - MHP. Tata Consultancy Services today announced a strategic partnership with Porsche AG for enabling AI services across the mobility value chain for Porsche. The partnership is reinforced by a five-year strategic deal from Porsche. As part of the deal, TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche to drive innovation across manufacturing, engineering, operations and customer experience. TCS, through its subsidiary, will acquire 100% of MHP Management- und IT-Beratung GmbH (MHP), Porsche's Germany-based management and IT consulting subsidiary. The proposed partnership and acquisition remain subject to regulatory approvals. MHP brings strong automotive and industrial consulting and implementation experience, with strengths in business transformation, AI, SAP, manufacturing digitalization, and connected mobility. Its long-standing track record in delivering complex automotive and industrial transformation programs will complement TCS' global scale and engineering prowess. K. Krithivasan, CEO and Managing Director, Tata Consultancy Services, said, "TCS is pleased to partner Porsche in its transformation journey. As AI, software, and data redefine the automotive industry, this partnership brings together TCS' capabilities in AI, engineering, technology and business transformation with MHP's strong automotive consulting expertise. Together, we will industrialize AI at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future." Dr. Michael Leiters, CEO, Porsche AG, said, "Porsche is taking another important step in its strategy to focus resolutely on its core business with the transfer of MHP to Tata Consultancy Services. At the same time, we are gaining a strategic partner in TCS. By combining Porsche's automotive expertise with TCS' digital technology and AI capabilities, we will further strengthen our innovative power, increase efficiency, and boost our competitiveness in an increasingly data and software-driven world of mobility." This close collaboration will be structured around three core pillars:

TCS to buy Porsche's IT unit for €1.25 billion

Tata Consultancy Services has secured a significant five-year deal worth €1.25 billion. This strategic agreement follows TCS' acquisition of MHP Management- und IT-Beratung GmbH. Porsche will partner with MHP and TCS to industrialize artificial intelligence across its operations. The partnership will also focus on delivering next-generation automotive technology services. This engagement anchors a long-term technology partnership between the three entities. Tata Consultancy Services (TCS) announced a five-year strategic deal worth €1.25 billion with Porsche AG and MHP, marking a significant expansion of its partnership with the German luxury carmaker. The deal follows TCS' acquisition of MHP Management- und IT-Beratung GmbH (MHP), and will take effect from the closing date of the acquisition, TCS said in a regulatory filing on Monday. Under the agreement, Porsche will partner with MHP and TCS to industrialise artificial intelligence across its engineering, manufacturing, operations, customer experience and enterprise transformation initiatives. Also read: Tata Motors to hike car prices by Rs 25,000; joins Maruti, Hyundai as costs hurt pockets The partnership will also focus on delivering next-generation automotive technology services and software-defined mobility platforms, as Porsche looks to deepen the use of digital technologies and AI across its business. The five-year engagement is aimed at anchoring a long-term technology partnership between Porsche, MHP and TCS, the company said.

Dr. Ing. H.C. F. Porsche Aktiengesellschaft Sells Mhp to Tata Consultancy Services

Dr. Ing. h.c. F. Porsche Aktiengesellschaft and Tata Consultancy Services have signed an agreement providing for the sale of the management and IT consultancy MHP to Tata Consultancy Services. Dr. Ing. h.c. F. Porsche Aktiengesellschaft has reached another milestone in its Sportwagenschmiede 35 strategy. The sports car manufacturer is taking another major step in focusing on its core business. At the same time, Dr. Ing. h.c. F. Porsche Aktiengesellschaft and Tata Consultancy Services, together with MHP, intend to establish a partnership in the fields of digital solutions and artificial intelligence, to accelerate the development, scaling and integration of AI applications in key business areas. The aim is to further advance Dr. Ing. h.c. F. Porsche Aktiengesellschaft?s digital transformation and tap into additional potential across the entire value chain. The acquisition of MHP by Tata Consultancy Services remains subject to customary regulatory and competition law approvals. The transaction is expected to be finalised in the coming months. Tata Consultancy Services intends to acquire MHP in its entirety as a group of companies. MHP will retain its brand and continue to operate as an independent consultancy under its existing name. As part of Tata Consultancy Services, MHP will benefit from greater innovation and development opportunities, enabling it to offer its clients additional expertise. Dr. Ing. h.c. F. Porsche Aktiengesellschaft and MHP will continue their long-standing and successful collaboration following the change of ownership. MHP will remain an important partner for the digitalisation and transformation of various areas of the sports car manufacturer, particularly in relation to artificial intelligence.

Porsche sells its MHP subsidiary to Tata Consultancy Services

This transaction will allow Porsche to refocus on its core automotive business, while forging a large-scale strategic partnership with TCS and MHP. The aim is to develop and integrate artificial intelligence (AI) solutions and digital technologies at scale across its entire value chain. For its part, MHP (4,500 employees) will keep its name and operational autonomy within the Tata group. The company will continue to support Porsche in its digitalization while benefiting from TCS's global reach. The transaction remains subject to approval by competition authorities and is expected to be finalized in the coming months.

Porsche to Sell MHP Consultancy Business as Turnaround Plan Continues

Porsche agreed to sell its management and IT consultancy MHP to Tata Consultancy Services as it continues to shed non-core assets as part of a broader turnaround plan. The German sports car maker said Monday that the sale will allow MHP to benefit from greater innovation and development opportunities, though Porsche will continue its collaboration with the unit following the change of ownership. As part of the agreement, Porsche and Tata Consultancy Services intend to establish a digital solutions and artificial intelligence partnership to speed the development, scaling and integration of AI applications, the automaker said. "Porsche is taking another important step in its strategy to focus resolutely on its core business with the transfer of MHP to Tata Consultancy Services," Porsche Chief Executive Michael Leiters said. "At the same time, we are gaining a strategic partner in TCS. By combining Porsche's automotive expertise with TCS's digital technology and AI capabilities, we will further strengthen our innovative power, increase efficiency and boost our competitiveness." The deal follows similar recent moves, including the sale of its stakes in hypercar joint venture Bugatti Rimac and electric-vehicle maker Rimac Group. It has also moved to shut down its battery-tech developer Cellforce Group, e-bike electric drive systems developer Porsche eBike Performance and Cetitec, a company that produces specialized software for data communications. Financial terms of the MHP sale weren't disclosed. The deal remains subject to regulatory approvals and is expected to be finalized in the coming months.

Porsche sells consulting subsidiary MHP to Tata Consultancy Services

Alongside the sale, Porsche and TCS are planning a strategic partnership on digital solutions and artificial intelligence (AI). MHP is also set to be retained as an independent brand and consulting firm within the Tata Group. Combining Porsche's automotive expertise with TCS's technology and AI expertise will strengthen innovative capacity, said Porsche CEO Michael Leiters. Based in Ludwigsburg near Stuttgart, MHP employs more than 4,500 people worldwide and for more than 30 years has advised companies on IT transformations, particularly in the automotive and manufacturing industries. MHP is set to remain an important partner for Porsche's digitization efforts. New owner TCS is part of India's Tata Group and provides IT services and consulting in 55 countries. (Reporting by Ilona Wissenbach, edited by Sabine Wollrab. For questions, please contact the editorial desk at [email protected])