TCS to acquire Porsche subsidiary MHP for $373 mn, signs five-year deal

India’s largest IT services player, Tata Consultancy Services (TCS), on Monday announced the acquisition of Porsche subsidiary MHP Management- und IT-Beratung GmbH (MHP) for €320 million (around $373 million). As part of this acquisition, Porsche has also signed a five-year strategic deal with TCS worth €1.25 billion.

As part of this transaction, TCS will also set up a centre of excellence (CoE) for Porsche for its future growth. Porsche is a net new client for TCS and the deal will be a new deal for the company.

The acquisition is expected to be completed within 3-4 months.

MHP is a leading player in automotive and industrial consulting in Europe and a subsidiary of Porsche AG (Porsche). MHP has expertise in business consulting, digital transformation, AI, SAP transformation, manufacturing digitalisation, and connected and software-defined mobility. The company, which works with over 300 clients, had a turnover of €742 million in CY2025. The company has a total of 4,500 employees, who would be joining TCS.

K. Krithivasan, CEO and Managing Director, Tata Consultancy Services, said, “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. Together, we will industrialize AI at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future.”

The partnership with Porsche, one of the world’s most successful sports car manufacturers, provides a marquee anchor for TCS’ AI transformation agenda and will position TCS as a strategic consulting and technology partner for Porsche and broader European automotive and industrial customers. Through this partnership, TCS and Porsche will collaborate to industrialise AI across Porsche’s engineering, manufacturing, operations, customer experience and enterprise transformation agenda, and deliver next-generation automotive technology services and software-defined mobility platforms for sustained value creation.

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

For TCS, this builds its presence in the automotive business and also its presence in Europe. For the company, manufacturing, which also includes auto, contributed 8.7 per cent to the firm’s revenue at the end of Q1FY27. For the full year of FY26, manufacturing’s contribution was 8.8 per cent. Growth has been slow in the segment.