Defence experts fear an increase in militant attacks in Kashmir with the Lok Sabha elections just a few weeks away.
Militants and security forces engaged in a fierce gun battle after the Army intercepted the vehicle attacked and hijacked by the unidentified gunmen in Kashmir.
Earlier in the day, one person was killed and three others injured after militants attacked a vehicle in Kashmir.
Defence expert, Bharat Verma, predicted an increase in militancy ahead of the upcoming polls.
"The terrorist attacks in Jammu and Kashmir are going to increase in the coming months for the simple reason that Pakistan army and Inter-Services Intelligence (ISI) feel that Jammu and Kashmir is becoming a very quiet, successful area where democratic procedures are being followed without too many disruptions. With the elections coming, this (militant attacks ) would be normal," said Verma.
Unidentified gunmen stopped a vehicle on the Jammu-Pathankot National Highway and opened fire on the passengers in Dayalachak area of Kathua district.
The injured were rushed to a hospital in Jammu.