Core Viewpoint - The U.S. government's announcement to significantly increase tariffs on imports from India has escalated tensions in U.S.-India relations, prompting Indian Prime Minister Modi to consider retaliatory measures similar to those previously employed by China against the U.S. [1][6] Group 1: U.S.-India Trade Relations - The U.S. has accused India of "abuse" in trade practices, with President Trump emphasizing that India has the highest tariffs globally and demanding reciprocal tariff adjustments [3][4] - Modi's government initially responded to U.S. pressure by reducing import tariffs on several American products, benefiting companies like Harley, Tesla, and Apple [3] - Despite these concessions, the U.S. continued to criticize India, leaving Modi's administration in a difficult position as it sought to meet U.S. demands without receiving corresponding leniency [4] Group 2: Potential Indian Retaliation - India is contemplating imposing retaliatory tariffs on U.S. imports, particularly targeting agricultural products such as wheat, corn, and fruits, which could significantly impact the U.S. agricultural sector [7] - The Indian government is also considering strengthening diplomatic ties with other nations, including Russia and the EU, to enhance its international standing and reduce reliance on the U.S. [7] - In the military sector, India may slow down its arms purchases from the U.S. and focus on enhancing its domestic military capabilities and collaborations with other military powers [9]

Core Viewpoint - The luxury car dealership industry has experienced significant growth over the past two years, driven by price increases and a strong performance in luxury vehicle sales, particularly amidst supply chain disruptions. The penetration rate of luxury cars in China still has substantial room for growth, and leading luxury car dealers are expected to maintain considerable growth moving forward [1][2]. Group 1: Market Opportunities - The luxury car penetration rate in China reached 16% in 2021, compared to approximately 27% in developed countries, indicating significant potential for growth [2]. - The compound annual growth rate (CAGR) for luxury car sales in China is projected to be 6% from 2021 to 2030, supported by a focus on vehicle replacement and upgrades [2]. - The company, Harmony Auto, is positioned as a leading luxury car dealer with a portfolio of 14 brands, including major luxury and super-luxury brands [1][2]. Group 2: Electric Vehicle Strategy - Harmony Auto has proactively engaged in the electric vehicle (EV) market, establishing partnerships with leading EV companies such as Tesla and NIO, and has received service authorizations from brands like Xpeng and Li Auto [3]. - The electric vehicle penetration among luxury brands in China remains low, with Porsche, Volvo, and BMW having electric vehicle ratios of 10.3%, 6.2%, and 6% respectively in 2021, but upcoming models are expected to focus on electric vehicles [3]. - Harmony Auto plans to expand its electric vehicle product line significantly, with BMW expected to offer 25 new energy models by 2023 and to fully utilize a new electric vehicle platform by 2025 [3]. Group 3: Performance and Market Confidence - Despite challenges from the pandemic and economic pressures, the demand for luxury cars remains stable and manageable, with notable growth in super-luxury brands like Ferrari and Rolls-Royce during the first half of the year [4][5]. - The company has initiated a share buyback plan of 200 million HKD, reflecting confidence in its long-term value and addressing current undervaluation [6].