LIC Increases Stake in Maruti Suzuki to Above 5% Amid Weakness in Auto Sector

Maruti Suzuki Share Price: LIC Increases Stake Beyond 5% Threshold

Life Insurance Corporation of India (LIC), the country's largest institutional investor, has strengthened its position in Maruti Suzuki by acquiring additional shares of the automaker through the open market. According to a regulatory filing, LIC purchased 51,750 shares of Maruti Suzuki on June 3 through a market transaction. Based on the stock's previous closing price of ₹13,064 on the NSE, the purchase is valued at approximately ₹67.61 crore.

Prior to the transaction, LIC held 1.57 crore shares, representing a 4.989% stake in India's largest passenger vehicle manufacturer. Following the latest acquisition, its holding has risen to 5.006%. This increased investment comes at a time when Maruti Suzuki shares have been under pressure, with the stock declining nearly 3% over the past month and down around 22% so far in 2026.

Despite the recent weakness, the automaker has delivered gains of about 8% over the last one year, more than 36% over three years, and nearly 81% over five years. On Friday, the stock ended 0.07% lower at ₹13,048.60 apiece on BSE, having hit its 52-week high of ₹17,371.60 in January 2026 and its 52-week low of ₹12,019.75 in June 2025.

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The stake increase coincides with Maruti Suzuki's launch of what it described as India's first flex-fuel passenger vehicle, the Wagon R Flex Fuel. Highlighting the country's dependence on imported crude oil, the company's Managing Director and CEO, Hisashi Takeuchi, emphasized the importance of developing sustainable and locally driven energy solutions.

LIC has remained an active buyer in the equity market despite volatility triggered by factors such as the Iran-US conflict, concerns over artificial intelligence-led disruptions, and broader global uncertainties. During the January-March quarter of FY26, the state-run insurer purchased shares worth around ₹18,500 crore (nearly $2 billion) across several companies, including Bajaj Finance and Bharti Airtel. During the same quarter, LIC also acquired Maruti Suzuki shares worth approximately ₹1,374 crore.