AGP Executive Report

Flex-fuel push in India: India launched E85 (85% ethanol) in New Delhi, alongside a Maruti Suzuki flex-fuel passenger vehicle, aiming to cut crude imports and boost rural ethanol demand. Retail & consumer tech: AI shopping assistants are moving from novelty to conversion, with reports that 41% of Indian consumers already use AI tools for product discovery and buying decisions. FMCG demand shift: Indian FMCG giants are leaning harder on beverages—coffee, RTD drinks, protein products and low-sugar juices—as they outpace broader categories amid uneven rural demand. Auto market signal from China: China’s retail car sales fell 22% in May as fuel cars dropped sharply, while NEV penetration hit a record 62.9%, and exports surged on AI-linked tech and autos. Cross-border logistics: ECS Group is expanding its Asia air cargo network with road feeder services and tech-led shipment visibility across 14 countries. China e-commerce export squeeze: Iran-war-linked jet fuel costs and weaker Western demand are pressuring low-cost Chinese online exporters. Aviation product tease: IndiGo hinted an “under development” business offering on its A350 fleet, with more A321neos set to carry its IndiGoStretch product. China military-linked firms: The Pentagon added Alibaba, BYD and Baidu to its list, affecting U.S. defense contracting eligibility. Market finance: India’s government started an OFS to sell up to 3% of NLC India at a floor price of ₹303/share. Beauty & wellness growth: Forecasts point to strong expansion in probiotic skin care and dietary supplements, with Asia-Pacific expected to grow fastest.

Consumer Sentiment Watch (India): Kantar’s May study shows confidence slipping fast: only 48% expect the economy to improve in 2026 (down from 60% in January), with more people worried about layoffs and retirement readiness, and healthcare costs topping household concerns. Regulatory Shock (India retail finance): SEBI’s interim order against Rajesh Exports alleges major revenue inflation and promoter-related misrepresentation, hitting sentiment after shares fell on the lower circuit and raising questions for investors and lenders. LPG Relief vs Reality (India households): India cut subsidised Ujjwala cylinders to four per year, even as retail LPG prices rose again; the move tightens budgets for lower-income families relying on cooking gas support. EU Market Access (India agri exports): India secured continued EU authorisation for aquaculture products, honey, eggs and animal casings beyond Sept 2026 under updated AMR-linked rules, protecting about $1.59bn in fisheries trade. China E-commerce Pressure: Temu/Shein/AliExpress-style exports face margin strain as jet fuel costs and weaker Western demand (linked to the Iran war) lift logistics charges and slow shipments. Auto & Tech (Asia consumer mobility): Uber plans UK driverless taxi trials this summer with Wayve tech; in India, Grasim is investing ₹3,094 crore to expand lyocell capacity, betting on sustainable textile demand. Energy & Supply Chain (Asia): Analysts warn China’s reduced oil imports helped keep prices steady, but the buffer may not last as inventories tighten.

Retail & Consumer Tech: Musinsa is expanding in China via an official Tmall Global storefront, aiming to make it easier for smaller Korean fashion brands to enter the market with a one-stop logistics, marketing and customer-support setup. AI & Smart Retail: Hong Kong is pushing AI adoption with a citywide literacy drive and plans for a mainland embodied-AI company to open a fully autonomous robotic retail store in Hung Hom. Food & Beverage Trends: India’s protein boom is going mainstream, with brands adding protein across everyday categories and regulators urged to tighten enforcement on claims. FMCG Pricing Pressure: With West Asia-linked oil and freight costs rising, Indian consumer goods firms are raising prices and also shrinking pack sizes to hold low price points. Energy Costs (India): India hiked domestic LPG prices again by ₹29 per cylinder, while the government argues cooking gas remains among the world’s cheapest. Mobility: Green SM launched fully electric taxis in New Delhi, entering India as its fifth international market. Health Products: Prenatal vitamin and drinking yogurt markets are forecast to keep growing, with Asia-Pacific flagged as a fast-growth region. Mideast Supply Chain: Reuters reports China’s low-cost e-commerce exports are faltering as jet fuel costs and weak Western demand bite platform profits. Corporate Deal: Japan’s GNI to buy Ayumi Pharmaceutical from Blackstone in a ~$280m deal to expand pain-management reach in Japan.

Household Energy Pressure (India): India raised domestic LPG by ₹29 per 14.2-kg cylinder from June 7, taking the total increase to ₹89 since the West Asia conflict began; Delhi now pays ₹942 (up from ₹913) and the government says Ujjwala beneficiaries still get an effective ₹642 after subsidy, while oil firms absorb losses as import costs tied to the Saudi benchmark jump ~46%. Foodservice Cost Watch (India): Commercial LPG also rose (about Rs 46 on June 1), with hotel and restaurant groups warning menu prices may keep climbing. Trade Friction (Thailand-Malaysia): Thailand says it’s ready to escalate Malaysia’s temporary suspension of imports for five shrimp species to WTO and ASEAN if talks fail, while rolling out 13 measures to protect farmers and exporters. Retail & Consumer Tech (India): T-Mobile launched a Global Technology Centre in Hyderabad, planning to hire nearly 1,000 professionals by 2027 across AI, cloud, cybersecurity and data analytics. Consumer Justice Digitisation (India): India’s e-Jagriti won a Silver Award for tech-enabled consumer grievance redressal, reporting 2.29 lakh cases filed and 2.07 lakh disposed since launch. Cross-border Payments (Nepal-India): Nepal and India moved forward on agreements including operationalising peer-to-peer cross-border digital payments, easing phone-based remittances for Nepalis in India. Japan Travel Incentives: Some Japanese prefectures are reassessing foreign tourist discounts after criticism and limited impact, as visitor patterns shift. Smartphone Launch (India): Realme P4R 5G is set for June 10 with an 8,000mAh “Titan Battery” and 45W fast charging, sold via Flipkart and Realme’s store.

LPG Cost Pressure in India: Domestic cooking gas prices in India rose by Rs 29 per 14.2-kg cylinder (Delhi to Rs 942), the second hike in three months as West Asia-linked volatility lifts import costs; the Petroleum Ministry says the “cost to supply” is now over Rs 1,600 while households still pay far less, with oil firms absorbing large under-recoveries. GLP-1 Supply Chain Watch: Goldman Sachs says generic semaglutide pricing after 2031/32 will hinge on peptide API capacity, with China leading synthetic API supply and global demand potentially requiring ~99,000 kg of peptide API by 2030. Nestlé India Royalty Update: Nestlé India paid Rs 1,024.5 crore royalty to its Swiss parent in FY26 (+13.9%), after shareholders rejected a plan to raise the royalty rate. Consumer Tech Pricing: Xiaomi Pad 8 in India got a Rs 2,000 price hike across variants, blamed on higher memory and storage chip costs. Retail & Malls: Megaworld Lifestyle Malls swept four awards at Singapore’s Retail Asia Awards, including Mall of the Year in the Philippines. Scam Risk for Home Repairs (Japan): Japan reports a rise in electrical repair fraud targeting household breaker panels via online ads and “abnormal reading” scare tactics. Handmade vs Machine Carpets (India): CEPC warns that machine-made carpets are being sold as handmade, urging stricter protection for artisans and correct labeling. Energy Security & Growth Outlook (India): Reports flag FY27 GDP growth moderating to ~6.5% as higher input costs, geopolitical risks, and monsoon uncertainty weigh on consumers and exports.

Consumer Policy & Pricing: India’s Department of Consumer Affairs has set standard pack sizes for edible oils and blended edible oils to make price comparisons easier and improve transparency for shoppers. Macroeconomy & Household Impact: India’s GDP grew 7.8% in Jan–Mar 2026 and 7.7% for FY25/26, but West Asia-driven crude volatility is expected to squeeze household budgets via higher petrol and diesel. Retail & Premium Mobility: TVS Motor is rolling out “TVS Paddock,” a dedicated premium retail and ownership ecosystem combining motorcycles, customization, community and specialized aftersales. Food & Consumer Safety: In Hanamkonda, consumer groups and food safety officials urged vigilance against adulteration and misleading promotions, highlighting risks in cooking oils and spices. Travel & Lifestyle (Japan): Diper Tour is pushing private, flexible Japan trip planning for Malaysians, Filipinos and Indians in 2026, citing post-Expo 2025 momentum and demand for less crowded itineraries. Cross-border Finance: China’s crackdown on cross-border brokers is rattling Hong Kong and UK-listed financials as capital controls tighten access for mainland investors. Tech & Infrastructure: RBI kept rates at 5.25% while adding incentives for eligible foreign investors in government bonds, aiming to support the rupee and attract inflows.

Seafood & Exports: India’s seafood push got a boost as Andhra Pradesh CM N Chandrababu Naidu said India has only 5% of global seafood share but “immense opportunities,” citing Andhra’s 28% of fish production and 66% of shrimp output, and urging quality, sustainability and traceability to scale exports. Flex-fuel Rollout: India began commercial E85 rollout for flex-fuel vehicles, with ethanol blending already at 20% and the new fuel designed for E20–E100 use. Auto Demand: India’s passenger vehicle market hit nearly 4.4 lakh units in May, up 23% year-on-year, led by Made-in-India brands. Digital Infrastructure: AirTrunk plans to invest about Rs 3 lakh crore to build 5 GW of data centre capacity in India, betting on cloud and AI growth. Retail & Consumer Trends: Japan’s Don Quijote launched clothing with built-in fans for hot-weather shopping, while China’s “tongjin” anime-themed gold accessories keep drawing fans (and licensing questions). Market Access & Finance: NSE crossed 26 crore unique trading accounts, reflecting retail investing momentum. Energy Security: Woodfield Systems shipped India’s first domestically made LNG marine loading arm, targeting reduced reliance on imported LNG handling equipment.

Flex-fuel push in India: India launched E85 (80–85% ethanol) for flex-fuel vehicles, starting at select pumps and targeting 500 outlets by Dec 2026 and ~5,000 by Dec 2027, aiming to lift ethanol blending toward ~26% by 2030-31. Premium EV ride-hailing expands: Vietnam’s Green SM (Vingroup-backed) launched an all-electric taxi service in Delhi-NCR and plans to roll out to other Indian metros in phases. India growth stays resilient: India’s Q4 GDP grew 7.8% and FY26 growth hit 7.7%, even as the U.S.-Iran war adds uncertainty; the RBI also trimmed its FY27 growth forecast to 6.6%. Japan consumer relief: Japan passed a 3.1 trillion yen ($19bn) extra budget to cushion households from Middle East-driven fuel and utility costs. China-US ag trade watch: USDA deputy secretary said China is likely to honor U.S. soybean purchase commitments, with broader optimism for other U.S. farm exports. China-ASEAN connectivity: China’s premier pledged deeper China–Laos cooperation, including trade, the railway and the economic corridor, plus AI and the digital economy. Retail & consumer tech: Instagram Reels is reported to drive product discovery and influence purchases in India, while CooperVision pushes myopia control as standard care across Asia-Pacific.

Energy & Utilities: HiTHIUM unveiled an 8-hour long-duration energy storage system at SNEC 2026, pitching longer battery runtimes as key to integrating more renewables and stabilising grids. Clean Power M&A: Inox Clean Energy agreed to buy Vena Energy’s 6 GW India renewables portfolio (1.2 GW operating, 1.8 GW near-commissioning, 3 GW development), lifting its operating/near-operational base to ~4 GW and expanding its pipeline beyond 12 GW. Retail & Consumer Tech (India): Xiaomi launched the 17T in India with Leica-tuned cameras and a 6,500mAh battery; Motorola followed with the Edge 70 Pro+ featuring a 6,500mAh battery and IP68/IP69 durability. Smartphones & Leadership: Infinix India reportedly lost its CEO as shipments slow and internal restructuring hits its launch cadence. Payments & Policy (India): The RBI held rates at 5.25% and raised its FY27 inflation forecast to 5.1%, citing West Asia-driven energy shocks and rupee pressure. Trade & Tariffs: The US said it will uphold tariff caps in deals with the EU and Japan, while analysts warn new forced-labour tariff threats are meant to pressure India trade talks. Japan Consumer Goods: Yamada and Edion agreed to merge under a holding company to build scale against e-commerce competition. Food & Retail (Japan): Lawson is running a “Super Happy!” challenge with upsized onigiri, sandwiches and cake, plus extreme “too sour” and “too sweet” drinks. Pacific Energy Costs: Fuel prices keep climbing in the Pacific, with Samoa moving to an “amber alert” and preparing power shedding as diesel caps bite. Energy Transition (India Mobility): India is set to launch E85 flex-fuel to speed adoption of ethanol-powered vehicles.

Payments & Consumer Trust: A viral Bangkok clip claims a Chinese noodle shop refused Thai baht and pushed customers to pay in renminbi, reigniting scrutiny of foreign-run businesses and local QR/payment practices. India–Venezuela Energy Deal: India’s PM Modi met Venezuela’s interim President Delcy Rodriguez to expand cooperation beyond oil into critical minerals, tech, agriculture and health, as India diversifies crude supplies amid West Asia disruption. China Auto Growth Model: China’s automakers show growth increasingly driven by overseas sales and new-energy mix, with Chery highlighting sharp export momentum. Gold Market & Consumer Impact: India’s gold ETFs saw their first net monthly outflow in a year as investors booked profits after higher import duties lifted prices. Brunei Consumer Trade Push: Brunei’s CFTE33 consumer fair and trade expo returns June 24–28 with local MSMEs plus Thailand and a major India presence. India Retail & Health Pressure: India faces a two-week shortage of key platinum chemotherapy drugs (cisplatin/carboplatin), with doctors blaming higher raw-material costs and price controls. Beauty Retail Expansion: Nykaa partners with Rare Beauty to expand the brand’s availability across India via its site and 30 stores. Car Fuel Innovation: Maruti Suzuki launched India’s first flex-fuel Wagon R (E20–E100), aiming to cut crude imports and support ethanol demand. Trade Policy Shock: The US says it will respect tariff caps in deals but is moving ahead with forced-labour-linked tariffs, while China rejects the premise. China–ASEAN Connectivity: China’s Pinglu Canal reached full-channel connectivity, a move framed as a new driver for China–ASEAN cooperation.

Consumer Protection Crackdown (India): India’s consumer watchdog fined PhysicsWallah ₹5 lakh and McAfee ₹1 lakh for dark patterns, including pre-selected donations without clear consent and “free” course access that required unnecessary personal data. FMCG Outlook (India): HUL’s Nitin Paranjpe said the company is staying confident on long-term growth, leaning on premiumisation, digital-first brands, and data-led operations despite near-term headwinds. Public Digital Infrastructure (India): A fresh DoT circular highlights PM-WANI’s scale—nearly 3.9 lakh hotspots and 2.45 crore users—using a decentralised model that lets small businesses run public Wi-Fi without licences or registrations. Retail & Payments (Japan/Thailand): Japan’s Yamada and Edion plan a merger to form a larger consumer electronics chain, while a Bangkok viral case alleges a Chinese restaurant refused baht and pushed renminbi payments, reigniting scrutiny of foreign-run payment practices. Connected Consumer Tech (Asia): Kenwood launched a new hi-fi range built on Frontier’s AURIA connected-audio platform, targeting premium mass-market buyers. Energy Transition Hardware (China/India): China’s copper demand is surging with AI servers and EVs, and India-focused Citi coverage lifted GE Vernova T&D India and Hitachi Energy India on expectations of a major transmission-and-distribution investment cycle. Auto Supply Shifts (UK/China): Nissan is exploring using spare Sunderland capacity to produce Chery vehicles, a sign of how Chinese brands are reshaping UK manufacturing. Smartphone Market (India): HMD’s Vibe 2 5G sold out in under an hour on Flipkart, reinforcing demand for big-battery, budget 5G devices. M&A Readiness (Asia): match.asia launched “Exit HealthCheck” to help SMEs avoid common deal-stoppers like valuation gaps and due-diligence shortfalls.

E-commerce Oversight: UK MPs heard warnings that potentially harmful gel nail polish and skin-lighteners imported from China are being sold on major online marketplaces, with regulators urging shoppers to check for a UK name/address on labels. Retail Expansion: Skechers India tapped Brandman Retail as an authorized reseller across Amazon, Flipkart, Myntra and others, aiming for 30%–40% growth in 12–18 months while pushing Tier-2/3 markets and new stores. Consumer Protection: India’s CCPA fined PhysicsWallah and McAfee India for “dark patterns,” including donation “basket sneaking” and fear-based subscription renewal prompts. Trade & Tariffs: The US proposed a 12.5% forced-labour tariff on Japan, China and others, while India said it remains engaged with the US on Section 301 talks. Food & Dairy: India-Oman CEPA took effect, giving duty-free access to a wide range of Indian food exports; meanwhile, ghee demand is rising on health-led premiumization. Mobility & Energy: Hero launched India’s first flex-fuel 100cc motorcycles (E20–E85), and Trane said its in-house service team is a key growth driver as buildings’ energy efficiency becomes a selling point. Sportswear Deal: NBA star Stephen Curry signed a long-term shoe/apparel deal with China’s Li-Ning. Defense Drones: India is set for over $2bn in additional domestic drone buys as conflicts boost low-cost UAV demand.

US Forced-Labour Tariffs: The USTR has proposed extra duties under Section 301 on imports from 60 economies, including India, with rates of 10% or 12.5% depending on the country’s enforcement status—raising new cost and sourcing questions for consumer supply chains. Japan Aquaculture: Japan says it has achieved commercial sales of fully farmed eels (“unagi”), aiming to cut reliance on wild-caught eel juveniles and stabilize a culturally important seafood category. India Inflation Watch: ICICI Global Markets projects India’s retail inflation could rise to 5% in FY27, led by food and energy, while core inflation stays near 4.5%—a key input for pricing across FMCG and retail. Japan Energy Relief: Japan’s cabinet approved a 3.11tn yen supplementary budget to cushion households from higher energy costs tied to the Middle East conflict. India-Oman CEPA: The India–Oman trade pact took effect June 1, with analysts pointing to stronger energy security and more resilient trade corridors. India Dairy Pricing: Mother Dairy says it has no intention to hike retail milk prices further, citing comfortable supply and fodder availability. EV Supply Chain Reality Check (India): Coverage highlights that EV growth is now constrained by imported lithium-ion batteries, shifting the focus from sales incentives to battery supply resilience. Retail/Brand Moves: General Mills is selling its Häagen-Dazs shops in China to a local investor group, signaling continued brand portfolio reshuffling in the market. Travel + Sustainability: Japan’s Coral eSIM links travel data to coral reef restoration, donating 1 yen per 1GB used abroad.

China NEV Sales Surge: May 2026 new-energy passenger vehicle sales hit a record pace, with CPCA projecting ~950,000 units and ~62.5% penetration; Leapmotor led with 81,569 deliveries (+81% YoY), while NIO and other startups clustered in the 30,000–35,000 range. Japan Regional Banks Reposition: Japan’s regional lenders are pulling back from China and shifting toward Southeast Asia and India as costs rise and local manufacturing demand softens. Unilever India Premium Push: Unilever CEO Fernando Fernandez says the company won’t “miss the Indian party,” targeting premiumisation and faster growth in India’s home and personal care categories. General Mills Häagen-Dazs Exit (China): General Mills agreed to sell its mainland China Häagen-Dazs shop business to a Ningji-led investor group, keeping retail/foodservice outside the divested shop unit. Tencent WeChat AI Agent: Tencent shares jumped after a report that it’s testing an AI agent for WeChat, with a potential phased public rollout. Curry x Li-Ning Deal: Stephen Curry signed a long-term shoe and apparel partnership with Chinese sportswear giant Li-Ning, expanding Curry Brand globally. Vietnam E10 Rollout: Vietnam moved ahead with nationwide E10 biofuel petrol from 1 June, stressing stable supply, fuel quality, and consumer protection. China Agriculture Plan: Beijing issued a 2026–30 blueprint to accelerate agricultural and rural modernization, including targets for grain capacity and product quality checks.

Sportswear & Celebrity Commerce: Stephen Curry ends sneaker free agency with a 10-year endorsement deal with China’s Li-Ning, expanding Curry Brand into golf, athleisure and lifestyle, with plans for stores in the US and China. China Consumer Services: China’s “companionship economy” is growing fast, with paid “climbing buddies” and social partners turning loneliness and gig work into bookable experiences worth about $7.4bn in 2025. Southeast Asia Travel Retail: Vinpearl signs MoUs with CAITO and Klook to boost resort, golf and MICE distribution for Filipino travelers across Southeast Asia. India Macro for Shoppers: India’s CPI inflation is projected to rise to 4.8% in FY27 if crude averages $90/bbl, with West Asia risks feeding into energy costs. Beverages & Capital Markets: Coca-Cola explores an IPO in India for Hindustan Coca-Cola Beverages, its main bottler, targeting a 2027 listing and potential partial stake sale. China Retail Brand Reshuffle: General Mills agrees to sell its mainland China Haagen-Dazs shops to a group including Ningji, signaling continued Western brand readjustments in China. ASEAN Digital Trade: ASEAN DEFA negotiations conclude, setting common rules for cross-border data, digital payments and online consumer protection. Japan Supply Shock: Japan faces a banana shortage risk as Middle East-linked fuel and ethylene constraints disrupt ripening logistics. AI Infrastructure for Enterprises: ai& and Plug and Play Japan team up to help firms deploy AI using Japan-based sovereign infrastructure. Robotics Education Trend: China’s humanoid robot study tours are spreading, turning youth learning into hands-on exposure at training centers and robotics hubs.

Food & Agriculture: India raised onion procurement prices by 24.4% to Rs 15.80/kg under its buffer stock plan, while pulse stocks hit a record 43 lakh tonnes to protect farmers and steady retail prices. Seafood Exports: India’s seafood exports hit a record 19.72 lakh tonnes worth Rs 73,890 crore ($8.46bn), led by frozen shrimp; the Vizag port emerged as the top gateway. Retail & Consumer Services: MR.DIY opened its 1,000th Philippines store and debuted an “elevated” format with brighter layouts and category zoning. Cross-border Trade: India launched CEPA with Oman via a $1.8m shipment, giving duty perks across gems, marine products, engineering goods and cables. Tech & Consumer Electronics: Steam Deck prices jumped sharply across Asia, with shortages and component costs blamed. Automotive Demand Shift: China’s EV transition is accelerating as rising fuel costs push buyers away from gasoline cars, even as overall sales stay pressured. Safety & Enforcement: A China mine blast exposed “black” mining practices, including unregistered workers and missing location tracking devices. Fintech & Payments: Waymo began limited free rides of its Zeekr-made Ojai robotaxi in major US cities, aiming to cut operating costs.