Indian IT giant Tata Consultancy Services (TCS), part of the Tata conglomerate, has announced a strategic partnership with German carmaker Porsche for enabling AI services across the European venture’s mobility value chain.
As part of the deal, TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche to drive innovation across manufacturing, engineering, operations and customer experience. TCS, through its subsidiary, will acquire 100% of MHP Management- und IT-Beratung GmbH (MHP), Porsche’s Germany-based management and IT consulting subsidiary. The proposed partnership and acquisition, for an enterprise value of 320 million euro, is expected to close in the next three-four months, subject to regulatory approvals.
MHP brings strong automotive and industrial consulting and implementation experience, with strengths in business transformation, AI, SAP, manufacturing digitalisation, and connected mobility.
“MHP’s long-standing track record in delivering complex automotive and industrial transformation programmes will complement TCS’s global scale and engineering prowess,” the companies noted.
Under the close collaboration between TCS and Porsche, the Indian IT giant to scale AI execution and drive outcomes for Porsche. TCS will set up a dedicated AI Mobility Centre of Excellence (CoE) that will focus on industrialising use cases in several core technologies for the mobility sector.
The CoE’s role will be to convert AI ideas into secure and scalable solutions that enhance velocity, operations resilience and competitiveness across Porsche’s product and value chain. TCS and Porsche will collaborate to embed AI across intelligent manufacturing and operations, engineering and customer experience.
The partnership will leverage Porsche’s world-class automotive engineering and brand experience along with TCS’ capabilities in AI, product engineering, technology and business transformation.
“TCS’ expertise provides a strong foundation to scale AI transformation and deliver business outcomes for Porsche’s organisation and its mobility ecosystem. The five-year business strategic deal between Porsche and TCS will enable a strong foundation to deliver these outcomes. TCS, through its subsidiary, to acquire MHP, a firm with proven automotive consulting and AI transformation capabilities. The acquisition will strengthen TCS’ presence in the German market and among European automotive and industrial customers,” the companies remarked.
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 industrialise AI at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences for the future.”
Dr Michael Leiters, CEO, Porsche AG, observed, “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.”
The deal comes at a time when Porsche, part of the Volkswagen group, has been facing severe pressure to cut costs as headwinds like Chinese competitors, tariffs and EV costs cast a shadow over its profit outlook.
The firm sold stakes in sports car makers Bugatti and Rimac earlier in 2026 and scrapped three subsidiaries, including its battery unit Cellforce and e-bike business, costing over 500 jobs.