TCS to buy Porsche's MHP unit for $373 million and launch $1.4 billion AI partnership

Tata Consultancy Services announced that its Netherlands subsidiary will acquire MHP Management, the consulting and technology arm of Porsche, for $373 million. The transaction, subject to regulatory approval, is expected to be finalized in the next three to four months. Alongside the purchase, the companies have sealed a five-year strategic partnership valued at $1.4 billion, aimed at driving AI-led transformation throughout Porsche's engineering, manufacturing, operations, customer experience and enterprise functions.

Porsche said the move supports its "Sportwagenschmiede 35" strategy to strengthen cash flow and profitability through 2035 by focusing on core activities. TCS CEO K Krithivasan highlighted the combination of TCS's AI and technology expertise with MHP's automotive consulting strength to industrialise AI at scale. Porsche CEO Michael Leiters described the deal as a step toward sharpening the brand's focus while gaining a digital partner to enhance efficiency and competitiveness. MHP will retain its name and continue operating as an independent consultancy.