Although the auto industry has a long value chain and it can be sliced into a fragmented process, the transportation cost is relatively higher as compared to the value of the final product. Therefore, economies of scale, a sizable domestic market, and the logistic cost must be taken into consideration of the production with the production network framework. Automakers began investing and producing in Thailand years ago and have developed domestically the support industries needed to produce the labor-intensive parts for their assembly lines. Hiratsuka (2011b) pointed out that the local procurement to overseas procurement ratio is very high for autos because manufacturers and assemblers aim to save on transport costs by procuring from domestic sources. First tier firms in the domestic market are usually foreign-owned FDI, while second tier firms may consist of Thai-owned firms equipped with Japanese technology or assisted in production by Japanese firms to ensure quality. The import of high-tech parts, such as electronic parts, are from its home country such as Japan.