Germany – Porsche is set to transfer its management and IT consultancy MHP to Tata Consultancy Services (TCS), as the sports car manufacturer focuses on its core business and seeks to expand its use of artificial intelligence.
The proposed transaction will see TCS acquire MHP in its entirety, subject to customary regulatory and competition law approvals. The deal is expected to be completed in the coming months.
Alongside the acquisition, Porsche and TCS, together with MHP, plan to establish a partnership focused on digital solutions and artificial intelligence.
The companies said the partnership will support the development, scaling and integration of AI applications across key areas of Porsche’s business.
The companies intend to use the partnership to advance Porsche’s digital transformation and identify further opportunities across its value chain.
“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,” says Dr Michael Leiters, Chairman of the Executive Board of Porsche AG
“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,” he continued.
Following the acquisition, MHP will retain its existing brand and continue operating as an independent consultancy. The company will become part of TCS, which is itself part of the Tata Group.
Porsche said MHP will benefit from TCS’s broader innovation and development capabilities while continuing its long-standing relationship with the sports car manufacturer.
MHP will remain a partner to Porsche in the digitalisation and transformation of various business areas, with artificial intelligence identified as a particular area of focus.
Additionally, MHP employs more than 4,500 people globally and is headquartered in Ludwigsburg, near Stuttgart. The consultancy has worked with Porsche as a strategic partner on numerous transformation programmes, particularly within the automotive industry.
“TCS is pleased to partner 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,” said K. Krithivasan, CEO and Managing Director at Tata Consultancy Services.
“Together, we will industrialise AI at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future,” Krithivasan continued.
The proposed acquisition and wider partnership are intended to combine Porsche’s automotive expertise with TCS’s technology and AI capabilities, while maintaining MHP’s role in Porsche’s ongoing digital transformation.
