Industry Odisha Bureau, Aug 26: In latest news, Tata Consultancy Services (TCS) is set to acquire MHP, Porsche’s automotive and industrial consulting business, for around Rs 3,570 crore. The deal is part of a wider five year partnership involving TCS, Porsche and MHP. The partnership will be focusing on AI, software defined vehicles, engineering, manufacturing and customer experience. This will strengthen TCS’ position in the fast growing automotive technology space.
TCS said that the acquisition is expected to close within the next three to four months. This will be subject to regulatory and other conditions. Meanwhile, MHP brings expertise in automotive consulting, software and digital mobility. This will give TCS a stronger presence in a sector where software and AI are becoming increasingly important.
The five-year agreement will see TCS work with Porsche on deploying AI across engineering, manufacturing, operations and customer facing functions. The companies will also collaborate on software defined mobility platforms and other automotive technologies.
The TCS-Porsche acquisition deal comes as IT companies look beyond traditional outsourcing for new sources of growth. At the same time, automakers are increasing their investments in AI, connected vehicles and software while trying to control costs.
Notably Porsche’s parent company, Volkswagen Group, is facing pressure from Chinese competition, tariffs, and the high cost of developing electric vehicles. The group has been restructuring parts of its business and reducing costs as the automotive industry undergoes major changes.
For TCS, MHP could provide both automotive expertise and access to Porsche;s wider technology requirements.
