Porsche and Tata Consultancy Services (TCS) have signed an agreement for the sale of Porsche's management and IT consultancy MHP to TCS. The transaction is subject to regulatory and competition law approvals and is expected to be finalised in the coming months.
Under the proposed transaction, TCS will acquire MHP in its entirety through a subsidiary. The deal is part of a broader five-year strategic partnership between Porsche and TCS covering artificial intelligence (AI) services across Porsche's mobility value chain.
The companies plan to establish a dedicated AI Mobility Centre of Excellence for Porsche. It will focus on applying AI across manufacturing, engineering, operations and customer experience, with the objective of developing and scaling applications across the company's value chain.
TCS to establish AI Mobility Centre of Excellence for Porsche
The AI Mobility Centre of Excellence will focus on converting AI use cases into scalable solutions for Porsche. The partnership will combine Porsche's automotive engineering capabilities with TCS' expertise in AI, engineering, technology and business transformation.
The companies intend to use the partnership to accelerate the development, scaling and integration of AI applications in key business areas, as Porsche continues its digital transformation.
TCS CEO and managing director K. Krithivasan said the partnership will combine TCS' AI, engineering and technology capabilities with MHP's automotive consulting expertise.
MHP to retain brand and operate independently under TCS
Following the transaction, MHP will become part of TCS while retaining its existing brand and continuing to operate as an independent consultancy. Porsche and MHP will also continue their existing collaboration, with MHP remaining a partner for digitalisation and transformation projects at Porsche, particularly in artificial intelligence.
MHP has its headquarters in Ludwigsburg near Stuttgart and employs more than 4,500 people worldwide. The consultancy has more than 30 years of experience in strategy and IT transformation and works across sectors including automotive, manufacturing, aerospace, defence, energy and the public sector.
MHP acquisition strengthens TCS presence in automotive
MHP's areas of expertise include automotive transformation, artificial intelligence, software-defined manufacturing, supply chain management, cybersecurity, programme management, and platforms and ecosystems. Its existing relationship with Porsche includes work on complex automotive transformation programmes.
For TCS, the acquisition will strengthen its presence in Germany and among European automotive and industrial customers. The company said the combination of its global technology and engineering capabilities with MHP's automotive consulting expertise will support the scaling of AI applications for Porsche.
Porsche CEO Dr Michael Leiters said the transfer of MHP to TCS forms part of Porsche's strategy to focus on its core business, while the partnership with TCS is intended to combine Porsche's automotive expertise with TCS' digital technology and AI capabilities.
The acquisition remains subject to customary regulatory and competition law approvals. TCS will acquire MHP as a group of companies, with the transaction expected to be completed in the coming months.