Volvo: Record-breaking year for car maker as UK sales near £2bn

Volvo’s UK sales jumped closer to the £2bn mark after another record-breaking year, it has been revealed.

The division, which is headquartered in Berkshire, has reported a revenue of £1.7bn for 2023, up from £1.4bn, according to newly filed accounts with Companies House.

The result also shows that its pre-tax profit increased from £5.1m to £6.7m over the same period.

Volvo said its VC40 continued to be its best-selling car with 26,000 registrations in 2023, up from 17,000.

The XC60 was second with 11,000 registrations, up from 7,000 while the XV90 had 7,000 registrations, a rise from 6,800.

A statement signed off by the board said: “In 2023, Volvo Car Group achieved significant milestones in its transformation journey.

According to the statement, this was the best performance the car manufacturer has seen in its 97-year history, with the company reporting “record-breaking retail sales, revenues and profits”.

Volvo also stated that it has taken “several significant steps forward, laying a solid foundation for 2024 and the years ahead”. This is despite the VC40 maker having to navigate “a complex external environment”.

The statement added: “2023 marked a very successful year for Volvo in the UK market, but also posed challenges.

“For example, increased interest rates negatively 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.

“Inflation also raised the cost base of the company, affecting areas such as salaries and procured goods and services.

“Additionally, events like the ongoing war in Russia/Ukraine indirectly impacted Volvo Car UK due to upward pressures on raw materials and energy prices resulting from the conflict.”

The wider Volvo group reported a revenue of SEK 399.3bn (£29.5bn) in 2023, up from SEK 330.1bn (£22.2bn) in 2022.