Porsche Signs $1.4B Tech Partnership With Tata for AI Services

India’s TCS will establish a dedicated ‘AI Mobility Centre of Excellence’ for Porsche’s global AI innovations across customer experiences, manufacturing, engineering, as well as operations.

As part of this deal, TCS will also acquire Management- und IT-Beratung GmbH (MHP), which is Porsche’s Germany-based management and IT consulting subsidiary for $373 million.

Porsche has made these deals to be able to concentrate on its core business of making sports cars, according to a statement by Dr Michael Leiters, Chairman of the Executive Board of Porsche AG.

MHP is headquartered in Ludwigsburg, near Stuttgart and employs more than 4,500 people worldwide. After the full acquisition MHP will become part of TCS, subject to regulatory and competition law approvals. MHP was founded in 1996.

Both deals between Porsche and TCS are expected to be finalised in the coming months.

TCS is one of India’s leading IT firms that generated consolidated revenues of over US $30 billion in the fiscal year March 31, 2026. It is part of the larger Tata group that also owns the Jaguar Land Rover, globally.

Porsche’s recent disinvestments are part of its “Sportwagenschmiede 35” turnaround strategy. aimed at shedding non-automotive segments, reversing capital-intensive electric vehicle expansions, and shifting focus entirely back to its high-margin sports cars.

Earlier this year in April, Porsche fully sold its equity stakes in Bugatti Rimac and Rimac Group to a New York-based investment firm. The financial terms of the transaction were kept confidential.

Porsche had bought a minority stake in Bugatti only in 2021, when it established Bugatti Rimac as a joint venture with Rimac to build a new ownership for the Bugatti brand.

Porsche also shut down its Cellforce Group battery subsidiary to cut costs and pivot away from strict EV targets. Facing a sharp drop in profits and industry supply chain issues, the automaker abandoned in-house battery cell production. It also shut down its luxury eBike Performance unit, closing factories in Germany and Croatia due to slowing sales. In total, more than 500 employees were affected by the move.

In fiscal year 2025, Porsche AG reported a sales revenue of €36.27 billion and an operating profit of €413 million, marking a steep decline due to EV strategy delays, and lower demand in key markets. The group’s return-on-sales was 1.1% in 2025, down significantly from 14.1% in 2024.

In their latest half-year financial results released in July 2026, Porsche AG reported a 5.1% year-on-year revenue decline to €17.23 billion, yet successfully initiated a profitability turnaround. Under new CEO Leiters, the company implemented a strict pricing mix that drove its operating return-on-sales up to 7.8% (compared to 5.5% in the prior year's first half).

Despite Porsche’s global vehicle deliveries dropping 16.5% to 122,306 units due to market weakness in China, disciplined corporate restructuring under the ‘Sportwagenschmiede 35’ lifted group operating profit by 33.9% to €1.35 billion.