TCS to buy Porsche's MHP unit for Rs 3,570 crore in major auto tech deal

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{display:none}table .inline_ad2 {display: none;}.trinity__container{display: none;} .autiostory a{display: none !important}.description table{max-width:100%;border: 0;margin-bottom: var(--widgetgap);} table tr td #teads-ad{display:none}table tr td .ads__container{display:none}ul>li div#shoppingWidgetLSH{display:none}ul>li div#shoppingWidget_mobile{display:none}.Story_story__content__body__qCd5E .Story_description__fq_4S>ul>li:has(.inline-story-add) div { display: none; }.pagetype__story ul li #checktheseout2{display: none}.newspress_rhs_widget .mframe { background: url(https://akm-img-a-in.tosshub.com/sites/misc/img/iphone-frame.png); }.ads_container .top_ad>* * { text-align: center; margin: 0 auto; }.ite_mg_banner:nth-of-type(2) { display: none; } .pagenode__2672529 .inline_ad2{display:none}TCS is acquiring Porsche's MHP unit in a Rs 3,570 crore deal focused on AI, automotive technology and software-defined mobility. (Representational image)Ankita GargNew Delhi,UPDATED: Aug 25, 2026 10:25 IST .ai_assist_bar2 { top:30px } TCS is set to acquire MHP, the automotive and industrial consulting unit of Porsche, for an enterprise value of EUR 320 million (around Rs 3,570 crore). According to Reuters, the deal is part of a much larger five-year partnership between TCS, Porsche and MHP, with the German automaker committing EUR 1.25 billion (around Rs 13,950 crore) towards the collaboration. The acquisition comes as technology companies look for new ways to grow beyond traditional IT outsourcing. The industry is facing pressure as clients remain careful about technology spending while AI changes how software and business services are delivered. MHP specialises in automotive and industrial consulting, with expertise in business consulting and software-defined mobility. The report claims that the acquisition could close within the next three to four months, subject to the required conditions. The company sees MHP as a way to strengthen its presence in the automotive technology space. Software is becoming increasingly important in modern vehicles, from connected features and digital services to systems that can be updated and improved through software. The partnership with Porsche will go beyond the acquisition. TCS said the five-year agreement will focus on deploying AI across Porsche's engineering, manufacturing, operations and customer experience functions. The companies will also work on automotive technology and software-defined mobility platforms. The deal will give TCS access to MHP's automotive expertise while creating an opportunity to expand its work with Porsche across several parts of its business. Porsche is part of the Volkswagen Group, which is dealing with pressure from Chinese competition, tariffs and the rising cost of developing electric vehicles. The Volkswagen Group is also under pressure to simplify its operations while dealing with Chinese competition, tariffs and expensive EV development. Those pressures have already led to several portfolio changes this year. Volkswagen sold stakes in Bugatti and Rimac and discontinued three businesses, among them battery venture Cellforce and its e-bike operation. The changes have affected more than 500 employees. The TCS-MHP deal therefore comes at an important time for the automotive industry, where companies are trying to balance cost reduction with investments in software, AI and electric vehicle technology. IT analyst Piyush Pandey of Centrum Broking told Reuters the acquisition should contribute to TCS' revenue but is unlikely to have a major immediate impact on the company's stock. "The deal will be adding to TCS revenue. It is similar to Harman DTS, Olam acquisitions done by Wipro where companies would land and expand. It will have a neutral impact on the stock and overall capability of the company," Pandey said. The acquisition also gives TCS a stronger foothold in a sector where AI and software are becoming central to how vehicles are designed, built and used.- EndsPublished By: Ankita GargPublished On: Aug 25, 2026 10:25 ISTAlso Read | Temple from Deepender Goyal is launching soon in India, it is unlike any wearable you have seen beforeAlso Read | Zoho founder Sridhar Vembu explains the problem with telling employees to be disciplinedAlso Read | Is TCS tracking employee laptops? 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