TCS to acquire Porsche’s IT consulting arm, set up AI centre under 5-year deal

Indian IT services major Tata Consultancy Services (TCS) said it will acquire 100% of Porsche AG’s Germany-based IT consulting subsidiary MHP and set up an AI Mobility Centre of Excellence for the German luxury carmaker as part of a five-year strategic partnership announced on Monday.

The proposed acquisition, which is subject to regulatory approvals, will expand TCS’s presence in Germany and the European automotive and industrial markets while giving Porsche a dedicated technology partner to scale artificial intelligence across its operations.

Under the partnership, TCS will establish the AI Mobility Centre of Excellence to develop and scale AI use cases across manufacturing, engineering, operations and customer experience. The focus will be on moving AI initiatives from experimentation to secure, scalable deployments across Porsche’s product and value chain.

The deal comes as automakers increasingly invest in software, data and AI to transform vehicle development, manufacturing and customer experiences, while also seeking to integrate digital technologies more deeply into their core operations.

MHP, Porsche’s management and IT consulting subsidiary, brings expertise in automotive and industrial consulting, business transformation, AI, SAP, manufacturing digitalisation and connected mobility. Its acquisition is expected to complement TCS’s capabilities in AI, engineering, technology and business transformation.

“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,” said K. Krithivasan, CEO and managing director, TCS.

The partnership will seek to industrialise AI deployments across Porsche’s value chain, with applications spanning intelligent manufacturing and operations, engineering and customer experience. TCS said the centre will focus on converting AI ideas into solutions aimed at improving operational resilience, speed and competitiveness.

For Porsche, the transaction also supports its strategy of concentrating on its core automotive business while transferring its IT consulting arm to a technology services company with a larger global footprint.

“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,” said Michael Leiters, CEO, Porsche AG.

The five-year strategic agreement will provide the framework for the two companies to scale AI-led transformation across Porsche and its broader mobility ecosystem.

For TCS, the acquisition of MHP could strengthen its position in Germany, one of Europe’s largest automotive and industrial markets, by adding an established consulting and implementation business with deep sector expertise.

The transaction is being advised by Deutsche Bank AG as financial advisor and Noerr as legal counsel to TCS.