Stuttgart/Ludwigsburg, August 2026 – Porsche is selling its management and IT consultancy, MHP, in its entirety to Tata Consultancy Services (TCS). The Indian IT group values MHP at 320 million euros. Around 4,500 employees will transfer to TCS along with the company as Porsche spins the consultancy off from its investment portfolio. At the same time, the two companies have agreed on a five-year partnership worth 1.25 billion euros covering IT, software, and AI services. Porsche cites a stronger focus on its core business as the reason for the move, thereby continuing its “Sportwagenschmiede 35” strategy. However, the acquisition is still subject to regulatory approval; TCS expects the deal to close within three to four months. TCS plans to continue operating MHP as an independent brand and consultancy firm.
Porsche simultaneously secures Tata with a multi-billion-euro contract
The true scope of the deal extends well beyond the purchase price. TCS is acquiring MHP at an enterprise value of €320 million but is simultaneously securing a major long-term contract from Porsche. The five-year agreement covers services spanning the automotive value chain. In addition, TCS is establishing a dedicated AI Mobility Centre of Excellence for Porsche.
Image: Shutterstock
There, the two companies aim to develop and scale applications for production, development, operational processes, and the customer experience. MHP contributes expertise in SAP, artificial intelligence, manufacturing digitalization, and software-defined mobility. However, the consultancy’s revenue fell to around €743 million in 2025, down from approximately €830 million in 2024. Consequently, the long-term contract with Porsche immediately secures a significant volume of business for TCS.
MHP moves to Tata after nearly three decades
Porsche first invested in MHP in 1998 and subsequently increased its stake in stages. The sports car manufacturer acquired full ownership of the consultancy in early 2024. Nevertheless, the group later sought a partner, initially evaluating various models. Porsche is now divesting its entire stake but remains one of the company’s key clients.
MHP serves more than 300 clients and possesses extensive experience in the automotive and manufacturing industries. Its client base also extends to the aerospace, defense, energy, and public sectors. As a result, TCS gains not only additional revenue but also direct access to specialized industrial expertise in Europe. Furthermore, the Indian group strengthens its position in the German consulting market through the acquisition of MHP.
Sale Part of Major Porsche Restructuring
The sale is part of a comprehensive reorganization at Porsche. In late July, the Executive Board and employee representatives agreed to cut another 5,000 jobs by 2035. Combined with earlier measures, this is set to reduce the workforce by approximately 9,000 positions. At the same time, however, Porsche plans to invest €2.1 billion in Zuffenhausen and Weissach and secure the future of both sites through 2035.
The economic backdrop explains the scale of this restructuring. In 2025, the Group’s operating result fell from €5.64 billion to just €413 million, while revenue declined to €36.27 billion; the previous year, Porsche had generated revenue of €40.08 billion. The sports car manufacturer is responding by cutting costs, adjusting its product strategy, and focusing more intensely on its core business. The sale of MHP thus represents another concrete step in this reorganization, while digital collaboration with the former subsidiary will continue.
Author: Blackout News
Sources: Handelsblatt (24.08.26) – Reuters (24.08.26) – Porsche Newsroom (24.08.26)