Global new car sales growth generated record operating profits at Volvo Cars last year.
Operating profits increased 27.7% in 2017 to a record SEK14.1 billion ($1.7 billion), driven by global sales of 571,577 cars.
Net revenue increased nearly 17% year-on-year to SEK210.9 billion ($26.1 billion), while its operating profit margin improved to 6.7%, compared to 6.1% the previous year.
Global sales rose 7% during the year, underpinned by a rise of nearly 26% in China, the manufacturer’s largest market.
Håkan Samuelsson, president and chief executive of Volvo Cars, said: “Our business has transformed completely since 2010 and we are now gearing up for a phase of global, sustainable growth.
“We are investing in all parts of our organisation and have laid out clear strategies around electrification, autonomous drive and connectivity.”
During the year, Volvo Cars launched a series of new models and developed strategies for a global shift to mobility services and electric vehicles.
It completed its global line-up of SUVs throughout the year, with the launch of the new XC60 and the company’s first ever small SUV, the XC40.
The XC40 launch also coincided with the introduction its new car subscription service, called ‘Care by Volvo’.
From 2019, it plans for every car launched to have an electric motor, while its Polestar divison has become a new stand-alone electrified car brand.
Volvo enhanced its collaboration with parent company Geely Holding and acquired a 30% stake in Geely’s new LYNK & CO car brand, with which it shares a vehicle platform.
Volvo has also signed an agreement with ride-hailing company Uber to sell it tens of thousands of autonomous driving-compatible cars between 2019 and 2021.