TCS Acquires Porsche’s MHP for €320M, Boosts AI Automotive

Tata Consultancy Services (TCS) is set to acquire MHP Management- und IT-Beratung GmbH (MHP), Porsche AG’s management and IT consulting subsidiary, for an enterprise value of €320 million. This strategic move aims to significantly bolster TCS’s footprint in automotive consulting and accelerate its focus on AI transformation, marking its third acquisition since October 2025.

This acquisition is not merely about expanding; it represents a calculated push into the evolving automotive sector where AI, software, and data are redefining industry landscapes. The deal underscores a broader trend in the IT sector, where mergers and acquisitions are increasingly driven by the imperative to enhance AI capabilities, as highlighted by a Crisil report.

Strategic Integration and Key Figures

MHP, a prominent European automotive and industrial consulting firm, brings robust expertise across business consulting, digital transformation, and AI. The company generated a turnover of €742 million in calendar year 2025 and employs approximately 4,500 professionals. MHP maintains operations across Germany, Romania, the UK, the US, India, and Mexico, providing a diverse global reach.

K. Krithivasan, CEO and managing director of TCS, emphasized the synergistic potential. He stated this partnership combines TCS’ strengths in AI, engineering, technology, and business transformation with MHP’s deep automotive consulting expertise, crucial as the industry undergoes a profound transformation.

The acquisition, which received approval from the board of TCS Netherlands B.V., forms part of an expansive strategic partnership between TCS and Porsche. This collaboration centers on AI transformation, next-generation manufacturing technologies, and software-defined mobility, with the transaction anticipated to conclude within three to four months, pending regulatory approvals.

Porsche’s Focus and AI Center of Excellence

For Porsche AG, this divestment allows the company to sharpen its focus on core business operations. Michael Leiters, CEO of Porsche AG, noted this move enables greater concentration on their primary objectives while securing advanced technological partnerships.

TCS intends for this acquisition to establish a long-term AI transformation alliance with Porsche, solidifying its market position in Germany and among European automotive and industrial clients. MHP’s specialized capabilities in automotive consulting and AI transformation are expected to integrate seamlessly with TCS’ global scale and technological proficiency.

A critical component of this partnership involves TCS creating a dedicated AI Mobility Centre of Excellence specifically for Porsche. This center will concentrate on industrializing AI use cases across Porsche’s manufacturing, engineering, operations, and customer experience, embedding AI throughout the product and value chain.

Beyond the MHP acquisition, Porsche has committed to a separate five-year strategic deal with MHP and TCS, valued at €1.25 billion. This significant agreement aims to provide a robust platform for long-term value creation, enabling both TCS and Porsche to scale AI transformation and achieve tangible business outcomes across Porsche’s organization and wider mobility ecosystem. Krithivasan reiterated that together, they will industrialize AI at scale for Porsche, driving innovation for intelligent, software-defined mobility experiences.