Police noticed a Volkswagen Polo on the N2 freeway with four occupants on Tuesday, Captain Thulani Zwane said.
From the licence plate they determined the car had been stolen in the Umbilo area on May 29.
The occupants shot at police when they tried to stop the car.
Police shot back, killing Khehla Thusi, 22. Another man was wounded and taken to hospital under police guard.
The other two were arrested and charged with possession of an unlicensed firearm and ammunition and of suspected stolen property, and attempted murder.
A Norinco pistol with ammunition, cellphones, and jewellery were recovered.