Mexico's auto production and exports slumped for a second straight month in February as the industry continued to feel the effects of declining demand in key markets.

The Mexican Auto Industry Association said production last month fell 38% from February 2008 to 107,547 units, following a 51% year-on-year drop in January.

Exports in February were down 45% to 77,833 units, after falling 57% in January.

Mexican auto makers continued to suffer from falling demand in the U.S., Europe and in the domestic market.

Domestic new car sales in February fell 29% from the year-ago month to 61,578 units, after falling 28% in January.

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