Photo Credit: Porsche AG / Official Newsroom
Indian information technology major Tata Consultancy Services has agreed to acquire Porsche AG’s management and IT consulting subsidiary MHP for an enterprise value of €320 million, alongside a five-year strategic partnership focused on artificial intelligence and software-defined mobility.
Announced on August 24, 2026, the transaction represents a significant expansion of TCS’s presence in Germany’s automotive and industrial technology market. The broader five-year agreement involving Porsche, TCS and MHP is valued at €1.25 billion.
The proposed acquisition remains subject to regulatory and competition approvals. It is expected to be completed within the next three to four months.
TCS to acquire MHP in its entirety
Under the agreement, TCS will acquire 100% of MHP Management- und IT-Beratung GmbH through one of its subsidiaries.
Headquartered in Ludwigsburg, near Stuttgart, MHP employs approximately 4,500 people worldwide. The consultancy works across the automotive, manufacturing, aerospace, defence, energy and public sectors.
Its areas of expertise include business transformation, artificial intelligence, SAP services, manufacturing digitalisation, connected mobility, supply-chain management, cybersecurity and software-defined manufacturing.
Following the completion of the transaction, MHP will retain its existing name and continue to operate as an independent consultancy within TCS. Its long-standing relationship with Porsche will also continue after the ownership transfer.
MHP CEO Federico Magno described the transaction as an opportunity to combine the consultancy’s sector-specific experience with TCS’s global technology capabilities. He said the two companies would be able to offer clients a broader range of services while opening up new development opportunities for MHP and its employees.
AI Mobility Centre of Excellence planned
The acquisition is tied to a five-year strategic agreement under which TCS and MHP will support Porsche’s continuing technology transformation.
The partnership will focus on embedding AI across the German carmaker’s engineering, manufacturing, operations and customer-experience functions. It will also cover next-generation automotive technologies and the development of software-defined mobility platforms.
TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche. The centre will be tasked with turning AI concepts into secure and scalable applications across the carmaker’s products, production systems and wider value chain.
TCS CEO and Managing Director K. Krithivasan said AI, software and data were reshaping the automotive industry. He said the partnership would bring together TCS’s technology and engineering capabilities with MHP’s automotive consulting experience.
“Together, we will industrialize AI at scale for Porsche,” Krithivasan said, adding that the collaboration would seek to accelerate innovation and support intelligent, software-defined mobility.
Porsche focuses on core automotive business
Porsche has positioned the sale as part of its “Sportwagenschmiede 35” strategy, through which the Stuttgart-based manufacturer is reviewing its structure and concentrating more closely on its core sports-car business.
Porsche AG CEO Dr Michael Leiters described the transfer of MHP to TCS as another step in that strategy. At the same time, he said, Porsche would gain a new strategic technology partner.
“We are gaining a strategic partner in TCS,” Dr Leiters said. He added that combining Porsche’s automotive capabilities with TCS’s expertise in digital technology and AI would support innovation, efficiency and competitiveness.
The agreement allows Porsche to transfer ownership of MHP while continuing to use the consultancy for digitalisation and business-transformation projects, particularly those involving artificial intelligence.
Porsche’s Chief Information Officer and MHP Supervisory Board Chairman Mattias Ulbrich said MHP had developed from a specialised SAP consultancy into an international transformation partner. Under TCS ownership, he said, the company would gain access to additional technology capabilities and a wider global network.
MHP brings German automotive expertise
MHP has worked on complex digital and organisational programmes across the automotive value chain for more than three decades. Its specialised knowledge of vehicle manufacturing, industrial processes and automotive software will complement TCS’s international delivery network and engineering operations.
The consultancy will also give TCS deeper access to European automotive and industrial customers at a time when manufacturers are increasing investment in AI, connected systems, digital production and software-defined vehicles.
MHP will remain an important technology partner for Porsche following the acquisition. The arrangement therefore goes beyond a conventional company sale: it combines the transfer of a German consulting business with a substantial, long-term client engagement.
India–Germany technology ties gain a new dimension
The transaction illustrates the changing character of India–Germany commercial engagement. Indian technology companies are increasingly moving beyond conventional outsourcing contracts and building locally anchored capabilities within Germany’s industrial economy.
By acquiring an established German consultancy, TCS will gain automotive expertise, local talent and client relationships. Porsche, in turn, will draw on the Indian company’s global capabilities in AI, engineering and large-scale technology implementation.
If approved, the acquisition and accompanying partnership will place TCS more firmly within Germany’s automotive transformation, while creating a new India–Germany platform for work in intelligent manufacturing, industrial AI and the next generation of software-defined mobility.
