A witness told the Wiener Zeitung newspaper that dead bodies were left lying face down in the street after the vehicle sped through the historical Herrengasse and Hauptplatz (main square) in Graz.
Around 50 pedestrians were injured during the rampage and ORF television said the driver had been arrested and the area sealed off. 
The broadcaster cited unnamed witnesses as saying the man drove his vehicle into the crowd apparently at random, sending people crashing into the windscreen and rolling over the bonnet.
The incident happened at around 12.30pm local time (11.30pm BST), sending screaming shoppers running into shops for safety.
Herrengasse is Graz’s main shopping street and the adjoining Hauptplatz is popular with tourists and diners making the most of the summer with its outdoor cafes and bars.
A witness speaking to the Wiener Zeitung compared the sound of chairs and tables being knocked over by the speeding car to a "gunfight".
Wilhelm Krautwaschl, the Bishop of Graz, said he was deeply saddened by the attack.
"Shocked about what happened, I pray for the victims and for those hurrying to help them," he wrote on Facebook.
A memorial service for the victims is due to be held at the Grazer Stadtpfarrkirche at 6pm this afternoon.
The 2015 Austrian Grand Prix is currently being held at the Spielberg Ring about 40 miles from Graz.
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