TCS and Porsche AG Partner to Accelerate the Future of AI-Powered Mobility
As part of the strategic deal, TCS will set up an AI Mobility Centre of Excellence for the auto major and acquire Porsche’s IT consulting subsidiary – MHP.
Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS), today announced a strategic partnership with Porsche AG (ETR: P911) for enabling AI services across the mobility value chain for Porsche. The partnership is reinforced by a five-year strategic deal from Porsche.
As part of the deal, TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche to drive innovation across manufacturing, engineering, operations and customer experience. TCS, through its subsidiary, will acquire 100% of MHP Management- und IT-Beratung GmbH (MHP), Porsche’s Germany-based management and IT consulting subsidiary. The proposed partnership and acquisition remain subject to regulatory approvals.
MHP brings strong automotive and industrial consulting and implementation experience, with strengths in business transformation, AI, SAP, manufacturing digitalization, and connected mobility. Its long-standing track record in delivering complex automotive and industrial transformation programs will complement TCS’ global scale and engineering prowess.
K. Krithivasan, CEO and Managing Director, Tata Consultancy Services, 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.”
Dr. Michael Leiters, CEO, Porsche AG, 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.”
This close collaboration will be structured around three core pillars:
- TCS to scale AI execution and drive outcomes for Porsche. TCS will set up a dedicated AI Mobility Centre of Excellence (CoE) which will focus on industrializing use cases in several core technologies for the mobility sector. The CoE’s role will be to convert AI ideas into secure and scalable solutions that enhance velocity, operations resilience and competitiveness across Porsche’s product and value chain. TCS and Porsche will collaborate to embed AI across intelligent manufacturing and operations, engineering and customer experience. The partnership will leverage Porsche’s world-class automotive engineering and brand experience along with TCS’ capabilties in AI, product engineering, technology and business transformation.
- TCS and Porsche to create a platform for long-term value creation. TCS’ expertise provides a strong foundation to scale AI transformation and deliver business outcomes for Porsche’s organization and its mobility ecosystem. The five-year business strategic deal between Porsche and TCS will enable a strong foundation to deliver these outcomes.
- TCS through its subsidiary, to acquire MHP, a firm with proven automotive consulting and
AI transformation capabilities. The acquisition will strengthen TCS’ presence in the German market and amongst European automotive and industrial customers.
Deutsche Bank AG acted as financial advisor and Noerr as legal counsel to TCS.
