Porsche and Tata Consultancy Services (TCS) announced a five-year AI partnership valued at €1.25 billion on August 24, 2026, alongside an agreement for TCS to acquire Porsche's consulting unit MHP Management- und IT-Beratung GmbH for €320 million [1, 2, 3, 4].
MHP, which employs about 4,500 people worldwide and specializes in consulting for automotive and manufacturing sectors, will retain its brand and operate as an independent consulting company within TCS. It will continue providing digitalization and transformation services to Porsche [5, 3, 4].
The acquisition is subject to regulatory approvals and is expected to close within three to four months [1, 5, 2, 4]. Once completed, TCS plans to deploy AI technologies across Porsche’s engineering, manufacturing, operations, and customer experience functions as part of the partnership [1, 5, 2, 3, 4].
Porsche CEO Michael Leiters said the sale aligns with the company’s core focus under its "Sportwagenschmiede 35" plan. He stated, "We are firmly aligning our company with our core business," and described the MHP transfer as "another important step in its strategy to focus resolutely on its core business" [3, 4].
TCS CEO K. Krithivasan added, "With this acquisition, TCS aims to industrialize AI at scale for Porsche" [3].
As part of longer-term restructuring, Porsche plans to reduce 5,000 jobs by 2035 through natural attrition, partial retirement, and voluntary departures [5].
The companies provided further deal and timeline details on August 26, confirming the regulatory review period and outlining initial AI application development [5]. The completion of the MHP acquisition is scheduled within the next three to four months pending approval.
