TCS to acquire Porsche’s IT unit MHP for €320 million to boost automotive tech

MUMBAI: Tata Consultancy Services (TCS) has agreed to acquire MHP, Porsche’s consulting and IT services subsidiary, for €320 million ($373.25 million), according to Reuters, in a deal that will deepen the Indian IT major’s presence in automotive technology and strengthen its European operations.

The acquisition gives TCS access to MHP’s specialised expertise in automotive consulting, digital engineering and IT services. MHP works closely with companies across the automotive ecosystem, making the business a strategic addition as manufacturers pour money into software, artificial intelligence, connected vehicles and digital platforms.

For TCS, the deal offers a faster route into a highly specialised segment. Rather than building automotive capabilities entirely from scratch, the company will acquire an established business with sector knowledge, technology expertise and an existing presence in Europe.

The timing is significant. The global automotive industry is undergoing a technology overhaul, with software increasingly becoming as important to vehicles as their traditional mechanical components. Automakers are investing in connected mobility, AI, digital manufacturing, software-defined vehicles and digital customer experiences, creating demand for technology partners that understand both code and cars.

MHP, which operates as Porsche’s consulting and IT services business, has developed its capabilities around this changing automotive landscape. Its expertise will add another layer to TCS’s digital engineering and consulting portfolio, particularly in Europe.

The transaction also comes as TCS continues to sharpen its focus on AI and industry-specific technology services. The company has been expanding beyond traditional IT outsourcing by investing in digital engineering, cloud, AI and consulting capabilities tailored to specific industries.

For TCS, automotive is an increasingly important part of that strategy. The sector is becoming more software-led, while manufacturers are looking for technology partners that can help them manage everything from connected vehicles and digital platforms to data and AI.

The deal also follows Porsche’s earlier consideration of options for MHP. Reuters reported in June 2025 that Porsche was evaluating a potential sale of the consulting and IT services business, with the process at an early stage at the time.

The acquisition fits into TCS’s broader push to combine technology capabilities with deeper industry expertise. As clients increasingly demand specialised partners rather than generic IT providers, owning businesses with established sector knowledge can give large technology services companies a useful head start.

At €320 million, the MHP acquisition marks another step in TCS’s efforts to expand its European footprint and build a stronger position in automotive technology, where the next generation of vehicles is increasingly being shaped by software.