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Analysts believe the partnership will also give Lynk & Co an advantage in terms of awareness, because Volvo is a well-known brand in China.

An online education tutor, or a head teacher, from Xueersi Online School guides students online at the company's Zhenjiang base, Jiangsu province in November. [Photo provided to chinadaily.com.cn]

Analysts said this is probably because most of the models in the segment are high-end and many carmakers have spent more time on sedans than on SUVs which became a hit only several years ago.

Analysts said steering towards green packaging is the long-term trend for the courier sector although it still needs time to achieve a complete transformation.

Anand Rao, an AI consultant at PwC, stressed that initially North America would experience productivity gains faster than China.