New models and growth in China have lead Volvo to record profits for 2017.

The company reported operating profits up 27.7 percent over last year, hitting 14.1 billion Swedish crowns (US $1.76 billion). Vehicle sales were up 7 percent for 2017, hitting 571,577. Sales in China, the automaker's biggest market, were up 26 percent to 114,410 vehicles.

"Our business has transformed completely since 2010 and we are now gearing up for a phase of global, sustainable growth," said Håkan Samuelsson, president and CEO.

2017 saw Volvo launch the XC60 and XC40 crossovers, as well as the introduction of Volvo's Care by Volvo car subscription service. The 2017 sales figure marks four consecutive years of record sales for Volvo. In addition to the growth in China, sales were driven by the 90-series sedan and wagon as well as the XC60 crossover.

The year also saw Volvo acquire a 30 percent stake in Lynk & Co, sign a framework deal to sell tens of thousands of self-driving compatible vehicles to Uber, and announce a new US manufacturing site to be built in South Carolina.