Volvo has issued a cautious outlook for 2025 despite achieving record-breaking sales and profits in the UK during 2024.
The Swedish automotive giant, whose UK operations are based in Berkshire, saw revenue climb to £2.3 billion, marking a significant rise from £1.7 billion the previous year.
Newly filed accounts with Companies House show Volvo’s pre-tax profits surged nearly fourfold, reaching £21.7 million, up from £6.7 million in 2023. The strong financial performance was underpinned by a sharp rise in vehicle registrations, with 66,400 cars sold in the UK, representing a 33% increase year-on-year. This pushed the firm’s market share from 2.64% to 3.4%.
The EX-XC40 model remained Volvo’s top seller, with registrations growing from 26,000 to 31,000 over the period. The company also expanded its workforce, increasing headcount from 361 to 421 employees.
However, despite its commercial success, Volvo has cautioned that 2025 will be a year of transition. The company anticipates profitability pressures due to a combination of slower global market growth, increased discounting across the automotive sector, and rising amortisation costs linked to the rollout of new models, including the EX90 and the forthcoming ES90.
The company noted that high interest rates during 2024 affected consumer confidence and contributed to higher operating costs. Although the impact on bottom-line results was limited, the firm expects tougher conditions ahead.
To address these challenges, Volvo plans to focus heavily on cash preservation. It now forecasts a positive free cash flow for the group in 2025, revising its previous guidance of a neutral outlook. In the UK, the firm aims to outperform the broader market by boosting sales and increasing its share despite global economic headwinds.
This strategy includes the launch of new models and tighter control of the cost base, which has faced inflationary pressures in recent years—particularly in areas such as salaries and procurement of goods and services.
As Volvo navigates a competitive and evolving automotive landscape, its UK arm remains committed to growth, efficiency, and strategic innovation to maintain its upward momentum.
