Porsche partners with Tata Consultancy Services in €1.25 bn AI deal and sells MHP consultancy

Porsche AG and Tata Consultancy Services Ltd (TCS) have signed a five-year strategic partnership worth €1.25 billion. Under the same agreement, TCS will acquire 100 % of Porsche’s German management and IT consulting subsidiary MHP Management-und IT-Beratung GmbH for an enterprise value of €320 million. The deal, subject to regulatory approvals, is expected to close within three to four months. AI technology will be deployed across Porsche’s engineering, manufacturing, operations and customer-experience functions, and a dedicated AI Mobility Centre of Excellence will be created.

TCS acquires Porsche subsidiary MHP for €320m in AI deal TCS Buys Porsche's MHP Unit in $1.5 billion AI Deal Porsche inks US$1.5 billion AI deal with India’s Tata Consultancy TCS to buy Porsche consulting arm in AI partnership

The transaction follows Porsche’s “Sportwagenschmiede 35” strategy to focus on core automotive activities by divesting non-core assets. Porsche has owned MHP since 1998, using the consultancy for strategy and IT transformations across the automotive value chain. The move mirrors a broader trend of carmakers outsourcing digital and AI expertise to specialist technology firms.

Porsche sells IT consultancy firm to India’s TCS

• Deal value: €1.25 billion AI partnership; €320 million for MHP.

TCS Strikes $1.45 Billion Porsche IT Deal, Buys MHP for $373 Million — BigGo Finance

• MHP workforce: ~4,500 employees worldwide, headquartered in Ludwigsburg.

TCS Will Buy Porsche's MHP Consulting Unit for $373 Million

• MHP turnover: €742 million in calendar year 2025, down from €828 million in 2023.

TCS acquires Porsche subsidiary MHP for €320m in AI deal

• Revenue multiple: acquisition price ? 0.43 × 2025 turnover.

TCS acquires Porsche subsidiary MHP for €320m in AI deal

• Annualised AI revenue for TCS: $2.6 billion in the June 2024 quarter, a 13.6 % increase from the prior quarter.

CNBC

Both companies said MHP will retain its brand and operate as an independent consultancy within TCS, preserving the existing collaboration on Porsche’s digital-transformation projects.

Porsche sells MHP to Tata Consultancy Services Porsche sells MHP automotive consulting arm to TCS Porsche sells IT consultancy firm to India’s TCS TCS Buys Porsche's MHP Unit in $1.5 billion AI Deal

• “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,” — Dr Michael Leiters, Porsche chief.

Porsche sells MHP to Tata Consultancy Services

• “TCS is effectively buying growth at reasonable valuations,” — Sushovon Nayak, lead IT analyst at Anand Rathi Institutional Equities.

TCS bags $1.45 billion Porsche deal, acquires carmaker's IT arm for $373 million

• “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,” — K. Krithivasan, TCS chief.

The Hindu

Regulatory clearance requirements are mentioned variably, including approvals from the European Commission, the EU Foreign Subsidies Regulation, Germany’s Federal Ministry of Economy and Energy, and Romania’s foreign-direct-investment screening commission. Precise timelines for each approval are not detailed.

TCS acquires Porsche subsidiary MHP for €320m in AI deal

The acquisition is slated for completion in the coming months, with most sources indicating a three-to-four-month window after the August 24 2026 announcement. After closing, TCS will begin implementing AI solutions across Porsche’s value chain and operationalise the AI Mobility Centre of Excellence. The five-year AI partnership is projected to generate roughly $290 million in annual revenue for TCS, creating a long-term stream tied to Porsche’s digital-transformation agenda.

TCS Buys Porsche's MHP Unit in $1.5 billion AI Deal