Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 61

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 61
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 option to install a variety of customized software-enabled IoT devices These devices, which Zoomcar
obtains from several suppliers and then programs prior to distribution to Hosts, serve multiple functions, including enabling Guests
to access Host vehicles by digitized keyless access and start and end bookings using Zoomcar’s mobile app. The IoT devices also
facilitate GPS monitoring by Zoomcar of in-trip vehicles, which serves a data collection function that is important to Zoomcar.

We have no control over
the quality or functionality of the IoT devices distributed to Hosts and such devices may not function as intended or may be out of service
during the course of a booking or while a Guest is attempted to access a booked vehicle. In such scenarios, Guests are able to contact
Hosts via number masking call or text chat enabled by Zoomcar Guest App. However, failures to provide the seamless keyless functions
may deny or delay Guests’ quick access to the vehicles, thus reducing Guests’ interest in utilizing our platform. Hosts,
in turn, may rely on Zoomcar’s customer support functionality to facilitate connecting Guests to emergency services in the event
of a vehicle accident or other situation that, if unresolved, could result in damage to a Host vehicle. If Zoomcar is unable to help
Guests that encounter problems during bookings, it could result in complaints and negative reviews from both Hosts and Guests, and higher
incidents of damages claims to Zoomcar by Hosts, leading to adverse consequences to our reputation, brand, business, prospects, and operating
results.

36

We do not have long term contracts with
the third-party suppliers of the IoT devices distributed to our Hosts and such suppliers can reduce quantities or terminate their sales
of IoT devices to us at any time. Any adverse changes in such supply or the costs of such products or services may adversely affect our
operations. 

We collaborate with third-party
suppliers who regularly provide products and services, including but not limited to IoT devices and software integrations, to us. We
do not have long term purchase agreements in place with our current suppliers of the IoT devices that we program and require our Hosts
to affix to vehicles that they register to our platform and our suppliers could reduce the quantity of or discontinue providing IoT devices
suitable for our needs. Given that the Hosts now have an option to install/not install these devices, we do not currently anticipate
material challenges to identifying replacement suppliers if shortages of IoT devices occur, we are