TCS to buy Porsche consultancy MHP in AI partnership

Tata Consultancy Services and Porsche have agreed a five-year strategic partnership focused on AI services for Porsche's mobility operations. The deal also includes TCS's planned acquisition of Porsche's IT consulting subsidiary, MHP.

The arrangement combines a long-term services contract with a corporate transaction that would bring MHP into TCS through one of its subsidiaries, subject to regulatory approval. Based in Germany, MHP provides management and IT consulting, with a focus on automotive and industrial transformation projects.

Under the agreement, TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche to support work across manufacturing, engineering, operations and customer experience.

The partnership is intended to introduce AI services across Porsche's mobility value chain. It has three main elements: scaling AI execution for Porsche, creating a framework for long-term value over the five-year term, and adding MHP to TCS through an acquisition.

MHP brings a sizeable workforce and an established presence in the German market. The consultancy employs about 4,500 people worldwide and has spent more than three decades working on strategy and IT transformation programmes in sectors including automotive, manufacturing, aerospace, defence, energy and the public sector.

Deal structure

The proposed acquisition would give TCS a larger base in Germany and deeper access to European automotive and industrial customers. It would also add expertise in artificial intelligence, SAP, manufacturing digitalisation, connected mobility, cybersecurity and supply chain management.

For Porsche, the transaction marks a shift in how it organises part of its technology consulting activity. The transfer of MHP forms part of a broader focus on core operations, while preserving a strategic relationship with TCS for technology and AI work.

Automotive companies have been increasing spending on software, data systems and automation as they seek to streamline factory operations, improve engineering workflows and strengthen digital services for customers. Partnerships with large technology services groups have become a common way to secure specialist skills while keeping investment aligned with operational goals.

The creation of a dedicated centre suggests Porsche wants a structured way to turn internal AI projects into production systems. The unit will focus on industrialising use cases in core technologies relevant to the mobility sector.

Its work will span intelligent manufacturing and operations, engineering and customer experience. The aim is to move AI concepts into secure, scalable systems used across Porsche's product and value chain.

Automotive focus

The tie-up also highlights the strategic value of specialist automotive consulting expertise at a time when manufacturers are balancing traditional engineering strengths with software development and data-led operations. MHP has built its reputation by advising industrial clients on complex business and technology change, making it a natural fit for a buyer looking to expand in automotive consulting.

TCS is one of India's largest technology services groups and reported consolidated revenue of more than USD $30 billion in its latest fiscal year. The company operates in 55 countries and has 202 service delivery centres worldwide, giving it a broad delivery footprint for multinational clients.

Germany is a significant market for engineering-led technology services, particularly in automotive manufacturing. By taking control of MHP, TCS would gain a stronger local platform in a country that remains central to European vehicle production and industrial software spending.

K. Krithivasan, Chief Executive officer and managing director, Tata Consultancy Services, outlined the company's view of the deal.

"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," said Krithivasan.

Porsche linked the move to its broader business priorities and the role of data and software in the sector.

"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," said Dr. Michael Leiters, Chief Executive officer, Porsche.