Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 12

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 12
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 critical to our future revenue growth and success. If the market for SaaS fleet management solutions
fails to grow, or grows more slowly than we currently anticipate, demand for our solutions would be negatively affected.

The market for SaaS fleet management
solutions is subject to changing customer demand and trends in preferences. Some of the potential factors that could affect interest in
and demand for fleet management solutions include:

  the effectiveness and reliability of the software platforms;  

  fluctuations in fuel and vehicle maintenance costs, which                        

  assumptions regarding general mobile workforce inefficiency                                  

  the extent of governmental and regulatory burden placed on        

  the price, performance, features, functionality, customer          

  our ability to maintain high levels of customer satisfaction.  

Failure of businesses to adopt SaaS fleet management solutions
could have a material adverse effect on our business, results of operations and financial condition.

Automotive market conditions and the evolving nature
of the automotive industry towards autonomous vehicles could adversely affect demand for our solutions.

New vehicle sales may decline
for various reasons, including adverse changes in the general economic environment, a reduction in our customers’ discretionary
spending or an increase in new vehicle tariffs, taxes or fuel prices. A decline in vehicle production levels or labor disputes affecting
the automobile industry in the markets in which we operate may also impact the volume of new vehicle sales. A decline in vehicle production
levels or sales of new vehicles in the markets in which we operate could result in a long-term decrease in the overall number of vehicles
and consequently, a decrease in our total addressable market, resulting in reduced demand for our solutions which could have a material
adverse effect on our business, results of operations and financial condition.

The automotive industry is also
increasingly focused on the development of Autonomous Driving (“ AD”) and Advanced Driver Assistance System (“ ADAS”)
technologies, including the utilization of artificial intelligence, with the goal of developing and introducing a commercially viable,
fully automated driving experience. There has also been an increase in consumer preferences for mobility on demand (“ MoD”)
services, such as vehicle and ride-sharing, as opposed to automobile ownership, which may result in a long-term reduction in the number
of vehicles per capita and sales of new vehicles. A reduction in the number of vehicles per capita and sales of new vehicles could reduce
our addressable market for solutions.

The increase in MoD services
has also attracted increased competition from entrants outside the traditional automotive industry. If we do not continue to innovate
to develop