Assistant Labour Commissioner M.S. Patel said the striking workers wanted the suspension of their 28 colleagues to be revoked but the management would not do so till it had completed an inquiry.
A company spokesman maintained on Wednesday that the strike has had no impact on production at the Sanand plant, which makes Nano car.
In all, 422 employees of the total 2,200 working at the plant are on strike since Monday night.
Patel said the trouble broke out about two months ago when two of the workers were suspended allegedly on disciplinary grounds.
"While one had allegedly abused his supervisor, the other was suspended because he had walked into another department. The workers went on flash strike," he said.
When the management failed to keep its promise of reinstating the two suspended workers, their remaining colleagues began seeking the immediate reversal of the suspension order.
"The management says the workers scratched and damaged over 50 vehicles in the plant and so they had to suspend 26 more people on Monday night. This saw the remaining workers going on flash strike," Patel said.
Striking workers have formed a seven-member committee to negotiate with the company management and the Gujarat government since they have no union.