Mexican production and exports of cars, a major export earner, soared in June and industry leaders on Monday predicted output would hit a record 2 million vehicles this year as the sector rebounds from a slump.

Output jumped 51.8 percent from June last year, while exports increased 64.9 percent, the Mexican Automotive Industry Association said. It was the second straight month of hefty year-on-year production growth.

The industry is one of the main drivers of Mexico's economy. A surging recovery in both output and exports is partly credited with lifting industrial production figures and economic growth estimates for 2006.

"We expect a higher second half ... that could bring production (for the whole year) to a record 2 million units," association chief Cesar Flores told reporters.

New models have rolled off assembly lines to supply a healthier-looking U.S. market, boosting the sector after weakness last year partly due to interruptions in U.S. demand.

Flores played down the political impact on the auto sector by a legal challenge launched by leftist candidate Andres Manuel Lopez Obrador against last week's presidential election victory by conservative Felipe Calderon, the investor favorite.

Flores said major automakers are used to working with governments of all ideologies but was cautious about the future of the economy.

"We think economic stability will continue for the rest of this year. We'll see how things look under the new (presidential) administration," he said.

Lopez Obrador lost the election in a recount early on Thursday by less than a percentage point and has called on supporters to march in his support to challenge the result.

The leftist has also refused to commit to a court's final ruling on his fraud complaint.