Stuttgart: German luxury carmaker Porsche announced that it has agreed to sell its management and information technology consultancy, MHP, to India-based Tata Consultancy Services (TCS) as part of its strategy to concentrate on its core automotive business. The agreement between the companies involves TCS acquiring the entire MHP group, although the financial terms have not been disclosed. The completion of the transaction is pending customary regulatory and competition approvals and is expected in the coming months.

According to Anadolu Agency, Porsche's divestment of MHP is a significant step in its Sportwagenschmiede 35 strategy, which focuses on reinforcing its core operations. Porsche Chief Executive Michael Leiters emphasized the importance of this move in aligning with the company's strategic objectives. Alongside the sale, Porsche, TCS, and MHP plan to establish a long-term strategic partnership aimed at enhancing digital solutions and artificial intelligence capabilities.

This cooperation seeks to accelerate the development, scaling, and integration of AI applications across essential business areas, furthering Porsche's digital transformation throughout its value chain. MHP will retain its name and corporate identity and will continue to operate as an independent consultancy within TCS, part of India's Tata Group. The longstanding collaboration between Porsche and MHP will continue, with MHP remaining a crucial partner in Porsche's digitalization and transformation initiatives, especially those involving artificial intelligence.

Headquartered in Ludwigsburg near Stuttgart, MHP employs over 4,500 people globally and has been providing strategy and IT transformation consultancy for more than 30 years, primarily serving clients in the automotive and manufacturing sectors.