This new facility will take Maruti Suzuki's combined manufacturing capability to 2 million units.
Maruti's both plants are in the Gurgaon-Manesar industrial area, where the company employs 13, 000-14, 000 permanent workers.
It already has a marketing network in place, though it is not as extensive as Maruti's.
The Maruti Zen is already being sold as the Suzuki Alto in 50 countries.
Maruti has stated publicly that it does not want to deal with more than one union.
Maruti has two car manufacturing plants--Gurgaon and Manesar in the northern state of Haryana.
Maruti acquired 700 acres of land for the plant from the Gujarat government, he said.
Maruti has however maintained that its move to Gujarat isn't linked to its problems with its employees.
He said also that Maruti is continuing to study the possibility of establishing an assembly plant overseas.
Maruti's other facility is at Manesar, also in Haryana, where it makes both gasoline- and diesel-run vehicles.
Santosh Maruti Mane was convicted of murder, attempted murder and damage to property, the court in Pune ruled.
The Maruti 800 is the cheapest car with foreign technology in the market.
Mr. Bhargava said Maruti has orders outstanding on its diesel-run vehicle models such as the Ertiga, Dzire and Swift.
State Bank of India rose 3.5% to 2, 255.85 rupees, while car maker Maruti Suzuki India gained 3.4% to 1, 420.45.
Suzuki, whose affiliate Maruti Suzuki has almost 50% of the Indian market, should have been the perfect partner there.
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Thursday's holiday will affect car production at Maruti by around 5, 000 units, a person with knowledge of the situation said.
Maruti company officials have also told the BBC that more than 50 senior manager level staff are still in hospital.
Haryana is a landlocked state and Maruti faces significant costs to transport vehicles to ports for export from its factories.
Most auto makers, including Maruti, recorded higher sales of diesel cars and utility vehicles in February when overall sales fell.
And Maruti Suzuki, India's biggest carmaker, more than doubled its sales in rural areas in the year to March 2009.
This and the hype surrounding the Santro, not to say the buzz around the Tata Small Car, is hurting Maruti's sales.
Maruti Suzuki, a joint venture between Maruti and Japan's Suzuki Motor Corporation, has a 50% share of India's booming car market.
"Maruti's advantage has been in both time and capital, " says AIAM's Bhat.
The violence was the worst since Maruti began manufacturing cars in 1983.
Maruti also has an engine facility in Gurgaon in which it makes its so-called K-series gasoline engines that power most of its vehicles.
The shift to Gujarat is seen as Maruti's escape from the constant labor trouble it has been embroiled in at its current facilities.
Besides the Alto, Maruti makes the WagonR, Estilo and the Ritz hatchbacks as well as the Ertiga utility vehicle and minivans at Gurgaon.
"I don't think those goals are going to happen in that time frame" said RC Bhargava, chairman of Maruti Suzuki, India's number one carmaker.
"There is no way the Tatas are going to price that car the way they say they are going to, " says a Maruti engineer.
The disinvestment minister Arun Shourie kick-started the privatisation of government-owned companies by divesting 25% of the government stakes in car maker Maruti Udyog in June last year.
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