The acquisition will strengthen TCS’ presence in the German market and amongst European automotive and industrial customers.
Porsche AG has executed a five-year strategic deal with MHP and TCS amounting to 1.25 billion euros.
The deal is intended to anchor a long-term partnership to industrialize AI across Porsche’s engineering, manufacturing, operations, customer experience and enterprise transformation agenda, including the delivery of next-generation automotive technology services and software-defined mobility platforms. It will be effective from the closing date of the said acquisition, the company said in a stock exchange filing.
The acquisition is expected to be completed within 3-4 months.
“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,” K. Krithivasan, CEO and Managing Director, Tata Consultancy Services, said, in a statement.
“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,” Michael Leiters, CEO, Porsche AG, said.
“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,” he said.
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.
