Volvo issues warning despite record UK sales
Volvo has issued a warning despite its UK sales surging to more than £2bn and its profit almost quadrupling in 2024.
The division of the Swedish car-making giant, which is headquartered in Berkshire, has reported a revenue of £2.3bn for its latest financial year, up from the £1.7bn it achieved in 2023.
New accounts filed with Companies House also show Volvo’s pre-tax profit jumped from £6.7m to £21.7m over the same period.
Volvo registered 66,400 cars in the year, a 33 per cent rise compared to 2023.
As a result, the company’s market share grew from 2.64 per cent to 3.4 per cent.
The EX-XC40 continued to be Volvo’s best-selling car, with 31,000 vehicles registered, up from 26,000.
In the year, Volvo increased its headcount from 361 to 421.
However, the car-making giant said that despite its record success in 2024, 2025 would be “a year of transition” and that its profit would come under pressure.
Volvo ‘determined’ to continue UK growth
A statement signed off by the board said: “2024 marked a successful year for Volvo in the UK market but also posed challenges.
“For example, interest rates remained high which affected consumer confidence and impacted operating expenses for Volvo Car UK, although the bottom line impact was limited in the wider context of the business.”
On its future, the company added: “Looking ahead, 2025 is expected to be a year of transition for the global business as we navigate a slower-growing market and heightened industry-wide discounting.
“These conditions, alongside increased amortisation costs from the ramp-up of new models like the EX90 and, later in the year, the ES90, will place pressure on both volume and profitability compared to 2024.
“As a result, all entities are sharpening their focus on cash preservation and now anticipate delivering positive free cash flow for the year – an upgrade from our previous guidance of neutral cash flow for the group as a whole.
“In the UK, while market conditions mirror global challenges, we are determined to outperform by growing sales and gaining market share.”
Volvo said this would be achieved through launching new models as well as balancing its cost base “which has seen increased inflationary pressure during the last few years, affecting areas such as salaries and procured goods and services”.