Company: ZCARW
Filing Date: 2025-01-10
Form Type: PRER14A
Source: 0001213900-25-002658
Chunk: 38

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-01-10
Form: PRER14A
Chunk 38
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, which  
 are the minimums required for continued listing on those markets.                           |

<div align='center'>18</div>

Reasons for the Reverse Split; Nasdaq Requirements for Continued Listing

The Board’s primary
objective in proposing a potential Reverse Split is to raise the per share trading price of our Common Stock. Our Common Stock currently
trades on Nasdaq under the symbol “ZCAR.” In order to maintain our listing on Nasdaq, we may be required to effect the Reverse
Split so that our listed shares maintain a minimum bid price per share of at least $1.00. The closing trading price on January 8, 2025
was $1.78.

The Company is currently
noncompliant with certain continued listing requirements of the Nasdaq Global Market, other than the Minimum Bid Price Requirement, and
presented a compliance plan to a Nasdaq Hearing Panel on January 9, 2025. The Company was advised by its Nasdaq advisor that if it presented
the option of consummating a Reverse Split, if the Company, in the future, becomes noncompliant with the Minimum Bid Price Requirement,
the Nasdaq Hearing Panel could give consideration to the Company’s having the right to consummate the Reverse Split and, the Company
therefore included its seeking stockholder approval for the Reverse Split on the agenda for the proposals for which stockholder approval
is being solicited at the Special Meeting.

The Board will not authorize
the Reverse Split, unless it is required to comply with the Minimum Bid Price Requirement, nor will the Board authorize the Reverse Split
in a ratio that would cause the Common Stock to be noncompliant with any of the other applicable Nasdaq continued listing requirements.

In addition, the Reverse
Split would increase the availability of such shares, which could then be issued upon conversion or exercise of our outstanding convertible
securities, including the Institutional Investors Bridge Warrants and the Reg D Investors Bridge Warrants, as well as for grants under
our currently effective equity incentive plan, or otherwise.

Our Board has concluded
that the liquidity and marketability of our Common Stock will be adversely affected if it is not listed on a national securities exchange
as investors can find it more difficult to dispose of, or to obtain accurate quotations as to the market value of, our Common Stock.
Our Board believes that current and prospective investors will view an investment in our Common Stock more favorably if our Common Stock
remains listed on Nasdaq.

Our Board also believes
that the Reverse