Arnaud Martinez (Hutchinson): “The group is focused on the aftermarket”

Arnaud Martinez, the French equipment manufacturer’s new aftermarket director, announces stable aftermarket activity in 2024 compared to the previous financial year: a healthy result given the complexity of the market. This is because “there are several significant threats on the horizon, starting with low-cost parts, particularly those from China”, he warns. This wave is affecting its domestic market, Western Europe, but also Latin America, where the equipment manu facturer is present and Chinese cars and parts have now gained a foothold. The Chinese offensive is now reaching the Brazilian market, at least as far as vehicles are concerned. Another characteristic is a strong need for availability. “To be ever more responsive to its customers, Hutchinson has modernised its production tools and storage solutions”, says the aftermarket director.

Faced with this competition, Hutchinson intends to maintain its premium positioning as an OE supplier, with its OE processes and strict compliance with manufacturer specifications. “With the exception of the American and Chinese markets, which have their own specific characteristics, new vehicle sales are declining and the overall fleet is ageing. Consumers have two choices: either turn to low-cost parts, or try to keep their vehicle in optimal condition and opt for OEM parts, which have fortunately conserved their image and market share”, analyses Arnaud Martinez. However, this is no easy task: “Just because we are a premium brand does not mean we can afford to be overly expensive.” It is particularly with a view to increasing competitiveness that the industrial tool has been modernised.

To maintain its market position, Hutchinson is diversifying. Historically specialising in distribution and accessories (belt, kit, pulley, etc.) for the lower engine and running gear (suspension and steering parts), the equipment manufacturer will soon be launching ranges to cover applications on newer vehicles, specifically related to electrification. “Hutchinson is involved in numerous projects with manufacturers for new electric and hybrid models. We want to be ahead of the curve in the aftermarket with a dedicated offering.” And while the equipment manufacturer has no intention of engaging in a price war – “you can always find cheaper; a premium equipment manufacturer cannot win on price” –, it is looking to differentiate itself with innovative alternative offerings. This differentiating positioning could involve more environmentally friendly products using bio-based or even recycled materials. This approach is particularly timely as it saves the planet and saves money…

In general, Hutchinson’s strategy is to have a foothold in all technologies and to address both older vehicles, “where the challenge is more industrial than technological, in order to ensure the availability of parts”, and the latest generations of vehicles. In this case, investing in both electrification programmes and the development of the latest combustion engines. From an industrial point of view, Brussels’ decision not to ban combustion engines will help to “smooth the load”, while Hutchinson already has expertise in electric vehicles through its factories in China. Another issue on the new aftermarket director’s agenda is the launch of operations in North America. This is a large market where the French company also has a strong presence in the original equipment market, with several factories in the US. “We are going to leverage this industrial strength to develop an aftermarket business”, says Arnaud Martinez. Another strategic area where Hutchinson wants to strengthen its position is North Africa. “Hutchinson is a group focused on replacement parts with a clear philosophy: to offer the widest possible range, with the guarantee of OEM specifications”, concludes the aftermarket director.