Overall atmosphere at the 2025 Icons of Porsche Festival held at The Slab on November 22, 2025 in Dubai, United Arab Emirates.
Maya Seliksa | Getty Images
Porsche has signed a five-year artificial intelligence contract worth 1.25 billion euros ($1.46 billion) with Tata Consultancy Services, India’s largest IT services company.
As part of the deal, TCS will acquire Porsche’s IT consulting business MHP for 320 million euros, the company said in a release.
This will combine Porsche’s “automotive expertise with TCS’ digital and AI capabilities,” Porsche Chairman Michael Reiters said in a press release. The partnership will strengthen the European sports car manufacturer’s innovation, efficiency and competitiveness “in an increasingly data- and software-driven world of mobility”.
TCS has won multiple AI-driven business transformation deals since the beginning of the year and announced annualized AI revenue of $2.6 billion in the June quarter, up 13.6% from the previous quarter.
AI is widely expected to have a negative impact on the business outlook of Indian IT services companies. The Nifty IT Index, a benchmark stock price for IT services companies, has fallen nearly 20% since the beginning of the year, while the Nifty 50 has fallen more than 7%.
The agreement with Porsche will become effective once the Indian software giant completes its acquisition of MHP, which employs approximately 4,500 people. TCS Chief Executive Officer and Managing Director K. Kritivasan said that with the acquisition, TCS aims to “industrialize AI at scale for Porsche.”
This will also increase the presence of Indian software services companies in the German market and among European automotive and industrial customers.
The sale of MHP is part of Porsche’s Sportwagenschmiede 35 strategy, which aims to improve the automaker’s profitability and cash flow. “We are very aligned with our core business,” Reiters said last month, adding that a key element of the strategy is streamlining operations at all levels.
