Thailand's automotive industry was established in 1961 and has been in existence for more than 50 years. Thailand hosts some of the world's major automobile manufacturing countries that are vital in producing other peripherals and components for the international market. Thailand's automotive industry ranked 13th in the world and 4th in Asia, and first in Southeast Asia. The success of Thailand’s automotive industry evolves from a Tri-party alliance. This strategic alliance includes the government, multinational automotive firms and local based automotive firms. Thailand state controlled organizations have played a distinct role in shaping this industry with the help of its Japanese partner. Thailand’s three-stage development includes substitution period (1961-1980), industrialization and Exporting (1981-2000) and globalization (2000-onwards). This study has look into the role of multinational corporations’ response to the government policy on industrial development. The result of the study showed the significant impact of the Japanese Automotive Manufacturers in shaping Thailand’s Automotive Industry.