Porsche Taps Tata Consultancy Services to Establish AI Mobility Centre of Excellence

Tata Consultancy Services will develop new AI services for Porsche AG as part of a proposed new five-year strategic partnership, the two companies have announced. TCS will set up a dedicated AI Mobility Centre of Excellence for Porsche, with the goal of unlocking AI innovation across its entire value chain including manufacturing, engineering, operations and customer experience.

As part of the deal, TCS will acquire 100 percent of MHP Management- und IT-Beratung GmbH (MHP), a subsidiary of Porsche AG, which has so far provided its management and IT consulting services. The companies are currently seeking regulatory approvals for the acquisition and overall partnership.

While financial terms have not been announced officially, Reuters reports that the five-year deal is worth €1.25 billion (approximately ₹13,933 crore). MHP is reportedly valued at €320 million (approximately ₹3,566 crore). The deal will also give TCS a stronger position in the automotive industry in Germany and Europe as a whole.

The Centre of Excellence will be tasked with executing and scaling AI deployments for Porsche’s industrial use cases across its operations, driving outcomes while ensuring security and scalability. The German high-performance carmaker, part of the Volkswagen Group, aims to improve its operational efficiency, resilience and competitiveness, while speeding up product development and manufacturing.

The two companies envision AI embedded across business processes including customer experience interactions, strengthening the Porsche brand while leveraging TCS’s business transformation and technology expertise along with MHP’s experience with manufacturing digitalisation and connected mobility.

News of the strategic partnership comes as Porsche AG grapples with slower-than-expected EV adoption, a pivot towards plug-in hybrid and traditional ICE powertrains, a significant drop in revenue from its China business, and recent US import tariffs plus the end of EV incentives. The company undertook a restructuring and cost-cutting exercise earlier this year under new CEO Dr Michael Leiters, and will reduce its staff strength by one-fifth, or around 9,000 employees, by 2035.

TCS CEO and MD, K. Krithivasan, said, “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, technology and business transformation with MHP’s strong automotive consulting expertise. Together, we will industrialize AI at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future.”

Porsche AG CEO Dr Michael Leiters said, “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. At the same time, we are gaining a strategic partner in TCS. By combining Porsche’s automotive expertise with TCS’ 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.”