Police said the suspect, an asylum-seeker, was known to authorities for previous unrelated drug and theft incidents.
Press photos from the scene show the car involved was a white Mini, with personal belongings including shoes, a pair of glasses and a stroller strewn across the road.
In a news conference, Bavaria Gov. Markus Söder provided details of the incident and confirmed it is being treated as a possible attack. Earlier, Munich police said at least two of those hurt were seriously injured.
“This is simply terrible, ladies and gentlemen, when you receive the news, that once again someone rammed their car into a group of people. There are a lot of injured. It’s a slap in the face,” Söder said.