Jaswinder Singh 'Rocky' was killed when the assailants fired at his car while he was returning to Chandigarh from Shimla, Solan SP Anjum Ara said.
While Jaswinder died on the spot, his driver Parambir Singh was seriously injured and was rushed to PGI, Chandigarh, the SP said.
Police suspect the assailants were chasing Jaswinder in a car and bike and fired from a close range at the bifurcation of Parwanoo-Pinjore four-lane road on Shimla-Kalka National Highway, 85 km from here.
"Gunmen fired indiscriminately at 'Rocky' from a close range," Inspector general of police (southern range) SZH Zaidi said, adding, CCTV footage revealed that the assailants came in two different vehicles, two in a car with two others were riding a bike and fled after committing the crime.
Rocky, who was in his mid-forties, had unsuccessfully contested Punjab Assembly polls in 2012 from Fazilka.