TCS Acquires Porsche's MHP IT Unit in $1.46 Billion AI Deal

The transaction, valued at €320 million, will be completed through TCS Netherlands, a subsidiary of the Indian IT services firm. TCS will acquire 100% of MHP, which specializes in automotive consulting, business transformation, and digitalization services for the manufacturing sector.

Under the five-year agreement, Porsche has committed €1.25 billion for technology and consulting services from TCS and MHP. The partnership will apply artificial intelligence to Porsche's engineering, manufacturing, operations, and customer experience functions, as well as develop next-generation automotive technology and software-defined mobility platforms.

TCS will also establish an AI Mobility Centre of Excellence for Porsche, aimed at driving AI-led innovation and supporting the development of software-driven mobility technologies. MHP will continue to operate as a distinct brand and independent consulting firm within TCS, and Porsche and MHP will maintain their existing business relationship.

The acquisition comes as Porsche focuses on its core sports-car business under its 'Sportwagenschmiede 35' strategy, which has included selling stakes in Bugatti and Rimac and closing several subsidiaries. The German automaker faces pressure from Chinese competitors, tariffs, and high electric-vehicle costs.

For TCS, the deal strengthens its automotive technology capabilities and expands its global engineering portfolio. It also comes as India's IT services industry contends with clients reducing or delaying traditional technology spending amid rapid AI adoption. The transaction is subject to regulatory and antitrust approvals and is expected to close within three to four months.