Toyota Innova, among the most popular multi-purpose vehicles (MPVs) in Vietnam, saw its price go down 13 percent year-on-year last month to VND771 million ($33,360).

Industry insiders said the drop of VND100 million ($4,330) was unprecedented for this model. Innova only reflected a general trend, they added.

Prices of the Toyota Vios sedan and the hatchback Kia Morning fell 13 percent and 12 percent, respectively. In the high-end segment, prices of BMW cars fell 18.5 percent.

Abundant supply is said to be one of the main factors behind the falling prices.

Car imports in the first 11 months of last year doubled year-on-year to almost 133,700 units, most of them from Thailand and Indonesia. Models with the biggest sales, MPV Mitsubishi Xpander and SUV Toyota Fortuner, were all imported.

Tightening credit from banks last year had made it more difficult for buyers, leading to an increase in inventory that had to be reduced by lowering prices. The introduction of new models was another factor.

Vietnam’s newest car manufacturer VinFast also intensified competition in the market with its SUVs, sedans and hatchbacks.

Auto sales in Vietnam last year rose 11.6 percent from 2018 to 322,322 units, with 58.8 percent of them locally-assembled, according to the Vietnam Automobile Manufacturers Association.