A high strength hot rolled steel sheet with an excellent combination of tensile strength of at least 550 MPa and formability, including weight percent at most 0.15% of C, at most 0.5% of Si, between 0.5 and 2.0% of Mn, at most 0.06% of P, at most 0.008% of S, at most 0.1% of Al sol, at most 0.02% of N, between 0.02 and 0.45% of V, between 0.05 and 0.7% of Mo, optionally between 0.01 and 0.1% of Nb, balance of Fe and inevitable impurities, wherein the steel sheet has a precipitation strengthened and substantially single-phase ferritic microstructure, wherein the volume fraction of the ferrite phase in said microstructure is not lower than 97%, and wherein the precipitates in the microstructure comprise fine precipitates of composite carbides containing Mo and V and optionally Nb.