The incident took place early on Friday in the Taiping area of the city of Zaoyang, the CCTV broadcaster reported.
After the police responded to the reports of a person driving his car into the crowd and arrived at the scene, the officers shot down the driver.
There have been no reports about the perpetrator's motives.
Last month another car plowed into a group of pedestrians at one of the crossroads in China's biggest city, Shanghai, injuring a total of 10 people, one of whom later succumbed to his injuries. A 31-year old man behind the wheel of the car was believed to have lost control of the vehicle.