Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 372

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 372
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 by Hosts, leading to adverse consequences to our reputation, brand, business, prospects, and operating results.

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 advise our Hosts to
install in the 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 reliant on third parties to provide
such devices and unanticipated shortages or an inability to identify new suppliers if our existing suppliers cease to be willing or able
to provide the IoT devices on terms and at costs acceptable to Zoomcar may occur. Any such shortages, reductions, or terminations in IoT
device supply arrangements may indirectly lead up to an adverse impact on our revenues, profits, and financial condition. Additionally,
if the market prices for IoT devices that are suitable for our needs goes up, we may need to purchase the devices at a comparatively higher
price, which may adversely affect our business, financial condition and results of operations.

94

We have limited control over
the operations of our suppliers and other business partners and any significant interruption in their operations may have an adverse impact
on our operations. For example, a significant interruption in the operations of our supplier’s production facilities could cause
delay or termination of shipment of the IoT devices to us, which may, in turn, reduce or delay our ability to pre-program and distribute
such devices to Hosts which may in turn  affect the retention of Hosts who are more inclined towards installing the devices leading
to a lower availability of inventory on our Platform.

As our operations continue
to scale and grow, we anticipate needing an increased number of IoT devices, and our demand therefore may exceed the capabilities of our
existing suppliers. If our suppliers cease to supply adequate numbers of IoT devices to us, or if we need alternative