TCS to buy Porsche's MHP in EUR €1.25 billion deal
Tue, 25th Aug 2026 (Today)
Tata Consultancy Services has agreed, through a subsidiary, to acquire MHP and enter a five-year partnership with Porsche in a deal valued at €1.25 billion.
The transaction combines a full takeover of Porsche's Germany-based management and IT consulting subsidiary with a broader agreement to support AI services across the carmaker's mobility value chain. It remains subject to regulatory approvals.
MHP employs 4,500 people worldwide and serves 300 clients across the automotive, manufacturing, aerospace, public and defence sectors. The business has offices in the US, Mexico, the UK, Romania, India and China, including a UK office in Reading.
For TCS, the acquisition adds a consulting business with established automotive and industrial operations in Europe. MHP's UK client list includes Aston Martin, Bentley, McLaren and INEOS.
AI partnership
Alongside the acquisition, TCS and Porsche plan to collaborate on AI projects across engineering, manufacturing, operations, customer experience and wider enterprise transformation. Under the five-year agreement, TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche.
The centre will focus on applying AI use cases in core mobility technologies. The companies said its remit will include turning AI concepts into secure, scalable systems across Porsche's product portfolio and value chain.
The move comes as carmakers and their technology partners invest more heavily in software, data and AI to reshape product development, factory operations and customer service. Consulting and IT services groups have increasingly pursued deals that deepen access to automotive clients and specialist domain expertise.
MHP is expected to strengthen TCS's consulting capabilities in automotive, manufacturing and aerospace, particularly in business transformation, AI, SAP, manufacturing digitalisation and connected mobility. The purchase also gives TCS a larger foothold in Germany, a key automotive market.
K. Krithivasan outlined the strategic rationale for the agreement in a statement on the deal.
"TCS is pleased to partner with Porsche in its transformation journey. As AI, software and data redefine the automotive industry, this partnership brings together TCS's capabilities in AI, engineering, technology and business transformation with MHP's strong automotive consulting expertise. Together, we will industrialise AI at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future," said K. Krithivasan, Chief Executive Officer and Managing Director, Tata Consultancy Services.
Porsche focus
For Porsche, the agreement reflects a decision to transfer ownership of MHP while maintaining a long-term technology relationship with TCS. The carmaker said the partnership would support its focus on core operations while adding an external partner for digital technology and AI work.
Dr Michael Leiters set out Porsche's position on the transaction.
"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's 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.
The transaction links one of India's largest IT services groups with a consulting firm that has built a strong position in the German automotive market. It also underlines the growing role of outsourcing and specialist consulting firms in helping manufacturers bring AI tools into industrial settings.
MHP has expanded beyond the automotive sector, with assignments in manufacturing, aerospace, public services and defence, but its historic ties to Porsche have made it a notable asset in the automotive consulting market. For TCS, acquiring the business broadens its advisory work with manufacturers as demand shifts from traditional IT support towards software, industrial data and AI-led transformation.
The €1.25 billion agreement covers both the acquisition and the five-year strategic partnership between Porsche, MHP and TCS.