Porsche Sells Consulting Subsidiary MHP to Tata Consultancy Services in Strategic Refocus

Porsche has entered a significant agreement to sell its management and IT consulting subsidiary, MHP, to Indian firm Tata Consultancy Services (TCS). This move is a pivotal part of Porsche CEO Michael Leiters' strategy to concentrate the company more closely on its core automotive operations. Valued at 320 million euros, the deal is pending regulatory approval. MHP, a wholly-owned Porsche subsidiary since 2021 based in Ludwigsburg, is set to continue operating independently under its established brand after acquisition by TCS.

Despite the sale, the cooperation between Porsche and MHP will remain strong, especially around artificial intelligence initiatives aimed at driving digital transformation and exploring further opportunities within Porsche's value chain.

This corporate restructuring follows a challenging 2025 for Porsche, when profits plummeted by 91%. Although the first half of 2026 saw a rebound to 1.07 billion euros in profits, this was largely due to the absence of prior year's restructuring costs. Yet, Porsche also faced a revenue decline of over 5% and a 16% drop in vehicle sales, particularly in the crucial Chinese market, hitting 122,300 units. The company is simultaneously preparing for substantial changes within its workforce, planning to cut 5,000 jobs in Germany by 2035, building on previous layoffs.