CORPORATE
TCS to buy Porsche’s consulting unit MHP, wins AI deal from German carmaker
- IBJ Bureau
- Aug 25, 2026
Tata Consultancy Services will buy Porsche’s automotive and consulting unit MHP,the IT major has said.
The deal is a part of a wider partnership under which Porsche has committed $1.46 billion for the Indian firm and MHP.
The transaction comes at a time when AI has been disrupting traditional outsourcing models in India’s $315-billion IT industry with clients pausing tech spends.
MHP is an automotive and industrial consulting firm that specialises in business consulting and software-defined mobility.
The deal, for an enterprise value of $373 billion or around Rs 3,576 crore is expected to close in the next three to four months, TCS has said.
The wider five-year pact is tied to deploying AI across Porsche’s engineering, manufacturing, operations and customer experience verticals as well as developing automotive technology and software-defined mobility platforms, TCS has added.
Porsche is a part of the Volkswagen Group, which is straining to cut costs and trim back its sprawling portfolio as it faces pressure from Chinese competitors, tariffs and EV costs.
The company had sold stakes in sports carmakers Bugatti and Rimac earlier this year and scrapped three subsidiaries, including its battery unit Cellforce and e-bike business, costing over 500 jobs.
“The deal will be adding to TCS’s revenue. It is similar to Harman DTS and Olam acquisitions done by Wipro where the companies would land and expand. It will have a neutral impact on the stock and overall capability of the company,” Piyush Pandey, an ITanalyst at brokerage Centrum Broking, has said.
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