UPDATE 1-Mexico automakers cut 2007 growth forecast

(Recasts, adds detail and background)

MEXICO CITY, Aug 7 (Reuters) - Mexican automakers will likely increase production and exports by 10 percent to 15 percent this year, less than the 20-25 percent they had previously expected, industry group AMIA said on Tuesday.

Mexico's auto industry exports soared 51.2 percent in July from the same month last year, the Mexican Automotive Industry Association, or AMIA, said, although growth for the year has fallen below expectations.

"Our growth is not sustained, and 25 percent growth over the next four months will be practically impossible," AMIA head Cesar Flores told reporters.

Auto production jumped 25.6 percent in July, AMIA said.

U.S. consumers buy most of the cars and trucks that Mexico makes, and plants producing vehicles and machinery for the United States are a key engine of Mexico's economy.

Except for May and July, Mexican auto exports have fallen every month since December, pinched by a slowdown in the U.S. economy.

((Reporting by Luis Rojas, editing by Jonathan Oatis; Reuters Messaging: rm://noel.randewich.reuters.com@reuters.net; Tel: +52 55 5282-7153)) Keywords: MEXICO ECONOMY/AUTO

(C) Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nN07217986