Mexican auto production and exports in July fell sharply from a year ago, although the rate of decline eased from previous months.

The Mexican Auto Industry Association, or AMIA, said Thursday that production last month fell 25% from July 2008 to 108,897 units, while exports were down 26% on the year to 90,872 units.

Domestic new car sales were 34% lower than in July 2008 at 56,443 units.

The drop in July production and exports was significantly smaller than in previous months. Production in June had fallen 48% from a year earlier, and was down 43% in the first half of the year. Exports fell 45% in June and 42% in the first half.

-By Paul Kiernan, Dow Jones Newswires; (5255) 5001 5726, paul.kiernan@dowjones.com