Geely-owned Volvo Car’s plan is working, said president and chief executive officer Håkan Samuelsson, as he reported net profit for 2013 climbed to US$301.9m, up from US$66m a year ago.

The automaker sold 427,840 new vehicles last year – up 1% from 421,951 in 2012.

Samuelsson said: "This strong turnaround from the first half of 2013 is further tangible proof of Volvo Car Group’s progress in implementing its transformation plan. This full-year profit represents a significant turnaround compared to the result for the first six months of 2013."

Just a few days ago, the carmaker reported February sales up 4.6% year on year – the eighth consecutive month of growth.

China’s Zhejiang Geely Holding Group in 2010 acquired Volvo Car from Ford after paying US$1.8bn in an almost all-cash deal.

Retail sales are forecast to grow by "a good" 5% in 2014, Samuelsson said.

"We are delivering on the plan we set out four years ago: focus on profitability, revitalise the brand, reinforce our product strengths and leverage our potential and position in China. 2013 was a year of groundwork, successfully preparing the way for the future. This year our total sales are forecast to increase and we will – with the XC90 – reveal the first product of a portfolio that will delight our customers, paving the way for the company’s future growth."

Sales in 2014 will continue to grow, driven by steady growth in key markets and improved products. In China, Volvo, Samuelsson said, would build on a strong sales performance in 2013, when sales rose 45.6% to 61,146 cars.

New models like the S60L and the sales start of the V40 Cross Country as well as a further expansion of the dealer network would support growth.

In the US, Volvo now has a line of fully refreshed S60, XC60, XC70 and S80 models, the sales start of the V60 sports wagon and the roll-out of the Drive-E powertrains.

Circumstances in Europe are expected to remain challenging but the automaker aims at least to retain its market share.