Khattar's place will be taken by Shinzo Nakanishi, who is currently the chairman of MSIL. R C Bhargava, who is a director, has been named the new chairman.
The changes were approved by the Board of Directors at a meeting today, a company statement said.
Khattar, a former bureaucrat, joined Maruti in July 1993 as director (marketing) and went on to become executive director (marketing) in the next six years.
In 1999, he was promoted as joint managing director. The year saw various disagreements between SMC and the government, which were joint shareholders in the company at that time.
Both the partners agreed to appoint their nominee as CEO and MD of Maruti for a three-year term, following which Khattar was appointed to the post as a government nominee.
In 2002, when it was SMC's turn to appoint MD, they renamed Khattar as their nominee. His second term as MD began in May 2002 which was supposed to last till the age of 65 years or end-2007, whichever was earlier.