The import duty hike could hit sales of luxury watches and comes just when the market for such watches was showing signs of pick up after close to a year of uncertainty, said Niladri Mazumder, President and Chief Operating Officer, Seiko Watch India.

Mazumder was in the city to roll out the Japanese watch- making company’s "Presage" mechanical watch collection at a store here.

Briefing select reporters about the watch industry in general and Seiko in particular, he said: "the past year has been quite a challenging one - both due to demonetisation and later, with the implementation of the Goods and Services Tax (GST)".

"GST is good, but has the initial teething problems. Even as we were getting adjusted to the new tax regime, the imposition of a hike in import duty from 10 to 20 per cent coupled with a cess could slacken the market," he said.

The company is still deliberating on price revision, he added.

Mazumder expressed confidence about Seiko’s growth. "We figure among the top three brands in the luxury segment, turnover-wise. We have grown at 20 per cent CAGR in the last five years."

The growth during the current year is expected to hover around 15 per cent.

On Seiko’s market share, Mazumder maintained that there was no study in the luxury watch market segment, but did not fail to add that the brand has been ranked among the top five international brands.

According to Seiko India’s COO, the mechanical watch market holds huge potential. "Mechanical watch market would overtake the quartz market in due course. It is green, needs no battery. Environment-conscious people prefer such watches. We have grown five times in this segment over our competitors," he added.

Seiko has introduced nine Presage collection luxury watches in India market. "We have launched the men’s collection. Women’s collection will follow soon," he said