Porsche Sells MHP to TCS in Major AI Partnership Deal
Porsche and Tata Consultancy Services (TCS) have signed an agreement for Porsche to sell MHP, its management and IT consultancy arm, to TCS. This deal marks another milestone in Porsche's Sportwagenschmiede 35 strategy and moves the sports car maker a significant step closer to focusing fully on its core business. Alongside the sale, Porsche, TCS and MHP plan to build a partnership centred on digital solutions and artificial intelligence, aiming to speed up the development, scaling and integration of AI applications across key business areas. This partnership will drive Porsche's digital transformation forward and unlock further potential across its entire value chain.
Dr Michael Leiters, Chairman of the Executive Board of Porsche AG, says, "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." He adds, "At the same time, we are gaining a strategic partner in TCS. By combining Porsche's automotive expertise with TCS's 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."
Regulatory and competition authorities still need to approve the deal, and both companies expect to finalise the transaction within the coming months. TCS plans to acquire MHP as a group of companies, and MHP will retain its brand and continue operating as an independent consultancy under its existing name. As part of TCS, itself a member of the globally active Tata Group, MHP will gain access to greater innovation and development opportunities, allowing it to offer clients even more expertise. Porsche and MHP will maintain their long-standing, successful collaboration after the change of ownership, and MHP will remain a key partner as Porsche digitises and transforms various areas of its business, particularly in artificial intelligence.
Over recent years, MHP has grown into a leading, internationally active management and IT consultancy. For more than 30 years, the firm has helped companies manage complex strategy and IT transformations across the entire value chain. MHP pairs deep industry knowledge with strong technological expertise, turning technological innovation into practical business models, processes and scalable industrial solutions. It serves a wide range of sectors, including automotive, manufacturing, aerospace, defence, energy and the public sector. As Porsche's long-standing strategic partner, MHP holds extensive expertise in transforming the automotive industry and has successfully delivered numerous complex transformation programmes. Its key growth areas include artificial intelligence, software-defined manufacturing, supply chain management, integration and scaling, cyber security, programme management, and platforms and ecosystems. MHP employs more than 4,500 people worldwide and runs its headquarters in Ludwigsburg, near Stuttgart.
K. Krithivasan, CEO and Managing Director of Tata Consultancy Services, says, "TCS is pleased to partner with Porsche in its transformation journey. As AI, software and data redefine the automotive industry, this partnership brings together TCS' capabilities in AI, engineering and technology and business transformation with MHP's strong automotive consulting expertise. Together, we will industrialise at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future."
Once the acquisition completes, MHP will become part of Tata Consultancy Services. TCS provides IT services, consultancy services, and technology solutions as part of the Tata Group, serving clients across numerous sectors and maintaining a presence in 55 countries worldwide.
