(Left) K Krithivasan, CEO & MD, TCS, and Michael Leiters, CEO, Porsche AG, at the signing of the MoU on Monday
| Photo Credit:
Santosh V Perumal _12549
Tata Consultancy Services (TCS) on Monday announced a €320 million ($373 million) acquisition deal with Germany-based Porsche AG for its automotive and industrial-consulting arm. The move will anchor a five-year partnership deal, between the two companies, worth €1.25 billion.
“The partnership with Porsche, one of the world’s most successful sports-car manufacturers, provides a marquee anchor for TCS’ AI-transformation agenda and will position TCS as a strategic consulting and technology partner for Porsche and the broader European automotive and industrial customers,” the IT-services firm said in its exchange filing.
Embedding AI
The company will acquire 100 per cent of the shares of Porsche’s subsidiary, MHP Management- und IT-Beratung GmbH (MHP), within the next three to four months. The consulting firm, focused on digital transformation, AI and SAP transformation, reported a turnover of €742 million in calendar year 2025 and employs approximately 4,500 employees.
In line with the deal, TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche to embed AI across intelligent manufacturing and operations, engineering, and customer experience. The partnership will leverage Porsche’s automotive engineering and brand experience along with TCS’ capabilities in AI, product engineering, technology, and business transformation.
This is TCS’ third AI-focused acquisition in the last one year, the other two being the $700-million buy of US-based multi-cloud consultancy Coastal Cloud and $72.8 million purchase of digital-marketing and IT-consulting firm ListEngage.
More footprint
“As AI, software, and data redefine the automotive industry, this partnership brings together TCS’ capabilities in AI, engineering, technology, and business transformation with MHP’s strong automotive-consulting expertise. We will industrialise AI at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future,” said K Krithivasan, CEO and Managing Director, TCS.
The acquisition will strengthen TCS’ presence in Germany, Romania, the UK, the US, India, and Mexico and among European automotive and industrial customers. MHP brings strong automotive and industrial consulting and implementation experience, with strengths in business transformation, AI, SAP, manufacturing digitalisation, and connected mobility.
“The deal will help TCS to be seen as a digital-engineering partner in the EU rather than a traditional outsourcer, and provides them access to a large number of industrial clients to whom they can cross-sell and up-sell,” said Sandeep Gogia, MD, Tech & Digital, Equirus Capital.
Further adding, Yugal Joshi, Partner at Everest Group stated that “Manufacturing has seen inconsistent growth for TCS and this deal provides revenue certainty. In addition, this allows TCS to drive success in Physical AI going forward. Smart manufacturing, OT-IT integration, edge are key trends converging for this sector that should help TCS.”
Analysts believe the move falls in line with IT companies’ traditional strategies of acquiring companies that have low marginal profile.
In 2020, Infosys had similarly acquired Daimler AG automotive companies in 2020. However, the company scaled back parts of the engagement as the business continued to operate on thin margins. In that respect, MHP’s strong AI focus has increased confidence in TCS’ acquisition strategy.
Published on August 24, 2026