Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 1034

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 1034
---
, many of which are currently evolving, and the risk of unfavorable interpretations
or failure to comply with such laws and regulations could harm Zoomcar’s business, financial condition and results of operations. 

Our platform currently operates
across 99 cities in India. We are subject to differing, and sometimes conflicting, laws and regulations in the various states in which
we operate our business, which are evolving and may change from time to time, which may give rise to inconsistent or ambiguous interpretations
among local, regional, or national laws or regulations applicable to our business. Compliance with laws and regulations of different states
imposing varying standards and requirements is burdensome for businesses like ours, imposes added cost, increases potential liability
to our business, and makes it difficult to realize business efficiencies and economies of scale.

Relative to India, which
is the location of our headquarters, and the market where we currently have the largest number of bookings, we operate as an asset-light
peer-to-peer carsharing business based on an interpretation of current legal and regulatory requirements. The operation of our business
is informed by a regulatory framework which includes but is not limited to, the India Motor Vehicle Act, 1988 (“MVA”),
which informs how we operate and the ways in which we promote our business. However, there can be no assurance that our interpretation
of relevant Indian laws and regulations, including the MVA, is complete or correct, or that transportation authorities in India will interpret
the MVA or other applicable regulations the same way that we do. In the event that the MVA or other applicable laws and regulations are
interpreted in a manner unfavorable to us, we could become the subject of investigations and could potentially face fines, duties, judgments
or other negative consequences, which could materially adversely affect our business and results of operations. Additionally, as our business
continues to grow and evolve, laws and regulations will be amended to address the evolution of our business, resulting in new and unpredictable
legal and regulatory obligations in emerging markets. It may be difficult for us to comply with the new laws and regulations that will
be developed to address changes in our industry and business, and we cannot guarantee that we will be able to comply with such new laws
and regulations. If our current or future business models are determined to be noncompliant with the national, regional, and local laws
and regulations, we may be required to make costly adjustments to our business model, which could result in negative consequences, many
of which may be outside of