MUMBAI : Tata Consultancy Services is buying MHP, Porsche’s German management and IT consulting subsidiary, for €320 million (roughly ₹3,575 crore), as part of a much bigger five-year agreement with the luxury automaker worth €1.25 billion, close to ₹14,000 crore.
The buyout hands TCS full control of MHP, a firm known for automotive and industrial consulting work, though Porsche isn’t walking away entirely, the carmaker will keep working with MHP even after selling it off.
The deal still needs regulatory and antitrust clearance, with closing expected within three to four months, and MHP will keep running under its own brand inside TCS rather than being absorbed and rebranded.
Beyond the acquisition itself, the five-year agreement covers technology services and AI deployment across Porsche’s business, with TCS setting up a dedicated AI Mobility Centre of Excellence built specifically for the German automaker. The scope stretches across engineering, manufacturing, operations and customer experience, and the two companies plan to work jointly on software-defined mobility and other emerging automotive technology.
MHP itself is no small addition, it brings over 4,500 employees and more than 300 clients into the fold, with 2025 revenue around €742 million. Its operations run mainly out of Germany and Romania, with a smaller footprint in India.
MHP’s existing expertise spans SAP transformation, manufacturing digitisation, connected mobility, business consulting and software-defined vehicles, areas that slot directly into where auto-industry tech spending is heading.
Porsche’s side of the story is really about narrowing focus. Selling off MHP fits into a broader restructuring push under parent company Volkswagen Group, as the automaker works through softer demand, growing competition out of China, tariff pressures, and the steep cost of shifting toward electric vehicles. Offloading a consulting subsidiary lets Porsche put more attention back on its core car business.
This isn’t TCS’s first big swing recently either. The company picked up US-based Coastal Cloud for $700 million and ListEngage for $72.8 million, both within the last year, making the MHP deal its third major acquisition in under twelve months.
TCS CEO and Managing Director K Krithivasan framed the Porsche partnership as a way to embed AI across the automaker’s operations and mobility business, while Porsche CEO Michael Leiters said the sale would let his company sharpen its focus on its core business while keeping its working relationship with MHP intact.
Investors, though, weren’t entirely won over.
TCS shares slipped at points on Tuesday as brokerages raised concerns over MHP’s declining revenue, the integration challenge ahead, and whether the price paid was justified. Worth noting: the acquisition and the Porsche services contract are technically two separate transactions, they’re simply being announced together as part of the same broader partnership.
