The Chinese billionaire owner of Volvo Cars has promised to “modernise” the Swedish company’s classic Scandinavian designs as it races to catch up with rivals in the world’s largest car market.

Li Shufu, chairman of one of China’s most successful private car companies, acquired Volvo from Ford in 2010. While executives from both its parent company, Zhejiang Geely Holdings, and Volvo Cars have denied there is any tension over strategy at the Swedish carmaker, Mr Li said changes were needed at a company he described as a late-comer for the fast-transforming China market.

“Because of a lapse of investment in product development over the years under previous ownership, we do see a lack of modernisation of Scandinavian design,” Mr Li said in an interview with the Financial Times.