Despite the run out of a number of models, Volvo's order book is growing significantly thanks to a change in the way the company talks to its customers in the UK.
Sales director Jon Wakefield said that the order take for the first month of this year is already running 58 per cent ahead of January last year and comes off the back of 3 per cent growth in 2013.
Wakefield said: "Growth last year was a little down compared with the rest of the industry but it was 8 per cent ahead of the previous year and we had the run out of models including C30. We are growing faster now after refocussing dealers on selling cars through PCPs rather than through large cash discounts. This is the way the market has been moving on the retail side."
Volvo sales in the UK last year totalled 32,666 and Wakefield is looking to hit 35,000 in 2014 with the push on PCPs expected to boost the retail side of the business which currently accounts for around 35 per cent.
V40 was the strongest seller last year and looks to be doing the same this year with the C-segment remaining very strong as people downsize, however the XC60 has also performed strongly "and is not that far behind", he added.
Business sales into fleets have held up well for Volvo and new engines currently being rolled out should maintain the appeal. The 181hp D4 engines come in at under 100 g/km on S60 and V60 model - 14 per cent Benefit in Kind - and a class leading 117g/gm - 18 per cent BiK - on the front wheel drive XC60 and XC70 models.
Despite being on sale for 11 years, Wakefield said the sales of Volvo's big XC90 SUV still hold up well, with around 2,500 leaving the showrooms last year and he expects a similar number in 2014 despite the fact that production will stop in the summer as the factory prepares for the new generation model due early 2015.
There has been no negative impact following the sale of Volvo by Ford to Chinese carmaker Geely in 2010. Wakefield added: "Certainly people have not been discouraged. Volvo is so Swedish and I don't think the average car buyer concerns themselves too much about the ownership of the company."
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One thing the relationship could bring is a smaller car. Volvo and Geely are said to be developing a subcompact vehicle platform in a joint Swedish research and development centre which the partners opened last year. Reports say the small model would be used exclusively by Geely to compete against the likes of the Ford Fiesta, Volkswagen Polo and Toyota Yaris.
A Volvo version has not been ruled out and Wakefield added: "Looking at the growth in the market segment a sub-compact would be welcome as long as it comes with all that is Volvo in terms of class leading safety, environmental efficiency and economy - but it's certainly not in my field of vision now."
