A key hub for auto export, Mexico’s auto industry is gaining momentum, growing both in terms of volume and value. In 2016, Mexico will open its first luxury car plant, propelling it up the value chain. Why the growth? Low wages, rising manufacturing standards, proximity to key markets, free trade agreements, low energy costs as well as a growing and reliable source of parts. Wood Mackenzie forecast Mexico to surpass Japan and Germany as the world's 4th largest auto producing country by 2035.