Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 901

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 901
---
,
and results of operations. 

Our business depends on the
overall demand for vehicle bookings. Any significant weakening of the economy in our operating jurisdictions or of the global economy,
including the current macroeconomic downturn, more limited availability of credit, economic uncertainty, inflation, financial turmoil
affecting the banking system or financial markets, increased unemployment rates, restrictions and reduction in domestic or international
travel, fluctuations in the price or availability of gasoline, and other adverse economic or market conditions may adversely impact our
business and operating results. Global economic and political events or uncertainty may cause some of our current or potential Hosts and
Guests to curtail their use of our platform. In addition, travel has been disproportionately impacted by a macroeconomic downturn. In
response to such downturns, Hosts and Guests may not use or spend on our platform at rates we expect, thus further reducing demand for
vehicle bookings. These adverse conditions have in the past resulted, and could in the future result in, reductions in consumer spending,
slower adoption of new technologies, and increased competition. We cannot predict the timing, strength, or duration of any economic slowdown,
including the current macroeconomic downturn, or any subsequent recovery generally. In addition, increases in inflation may cause Guests
to decrease travel or choose alternative or lower cost methods of transportation versus utilizing our platform. If the conditions in the
general economy significantly deviate from present levels and continue to deteriorate as a result of any such macroeconomic downturns,
our business, financial condition, and results of operations could be adversely affected.

95

Increases in, labor, energy, and other costs
could adversely affect our operating results. 

Factors such as inflation,
increased labor and employee benefit costs, and increased technology upgrade and updated costs, as well as other inflationary pressure,
may increase our operating costs. Many of the factors affecting such costs are beyond our control cause these increased costs may cause
us to pass costs on to Hosts and Guests by increasing certain fees paid by them to us, which may cause booking volume to decline, which
would harm our business and operating results.

Our operations have grown substantially
since our inception, and we expect that they will continue to do so, subject to our financial condition. If we are unable to effectively
manage that growth, our financial performance and future prospects will be adversely affected. 

Since our inception, we have
experienced significant growth in the scale of our operations. This expansion increases the complexity of our business and places significant