TCS buys Porsche’s IT Consulting arm MHP for €320 Million, deepens AI and automotive push 

Tata Consultancy Services is making a significant push into the future of automotive technology, acquiring Porsche AG’s management and IT consulting subsidiary MHP for an enterprise value of €320 million, or approximately Rs 3,574 crore. 

The all-cash acquisition, which will give TCS 100 per cent ownership of MHP, is part of a much larger five-year strategic partnership between TCS and Porsche valued at €1.25 billion. The transaction is expected to close within the next three to four months, subject to regulatory approvals in the European Union, Germany, and Romania. 

The acquisition is about considerably more than adding another consulting business to TCS’s portfolio. MHP brings deep expertise in automotive and industrial transformation, with capabilities spanning artificial intelligence, SAP transformation, manufacturing digitalisation, business consulting, and connected and software-defined mobility. It employs around 4,500 people and reported turnover of €742 million in calendar 2025. 

For TCS, that makes MHP a potentially valuable bridge between its global technology scale and the increasingly software-defined automotive industry. 

Why Porsche is selling 

The deal also reflects a strategic shift at Porsche. 

The German sports-car maker has been sharpening its focus on its core automotive business, while the demands on manufacturers to invest in software, artificial intelligence, digital manufacturing, and connected vehicles continue to rise. 

Porsche’s decision therefore allows it to concentrate resources on building cars and its core business, while retaining access to MHP’s expertise through its continuing relationship with the consultancy and its new strategic partnership with TCS. 

“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 AG CEO Michael Leiters said. He added that combining Porsche’s automotive expertise with TCS’s digital technology and AI capabilities would help strengthen innovation, improve efficiency, and boost competitiveness in an increasingly data- and software-driven mobility industry. 

That arrangement is important: MHP will remain a distinct brand and independent consulting firm within TCS, while Porsche and MHP will continue their longstanding collaboration. 

TCS bets on AI-powered mobility 

The acquisition will also anchor a much broader technology relationship. 

TCS plans to establish a dedicated AI Mobility Centre of Excellence for Porsche, focused on industrialising AI applications across manufacturing, engineering, operations, and customer experience. The partnership is expected to cover areas ranging from enterprise transformation to next-generation automotive technologies and software-defined mobility. 

For TCS, the strategic logic is equally clear. MHP gives the Indian IT major specialised automotive consulting capabilities and a stronger presence among German and European automotive and industrial customers. TCS, meanwhile, brings global delivery capabilities, engineering expertise, AI capabilities, and access to a much broader international technology ecosystem. 

K. Krithivasan, CEO and Managing Director, TCS, 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 industrialise AI at scale for Porsche,” he added, “accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future.” 

The deal comes at a time when automotive companies are increasingly being forced to behave like technology companies, with software, data, AI, and digital manufacturing becoming central to competitiveness. 

For TCS, MHP offers an opportunity to move further up that value chain. For Porsche, it offers a way to keep access to specialist technology capabilities while concentrating its own resources on what it does best. 

In that sense, the €320 million acquisition may be only the visible part of a much larger bet; that the next generation of automotive competition will be shaped as much by code and computing as by engines and engineering.