At least two men were hurt in the incident, which sparked fears of a terror attack.
Revellers were drinking outside a bar in the city of Huelva, Andalusia, when the incident occurred.
Shocking photos show people scattering as a vehicle drove through a group of people.
Shocked residents then gathered around the vehicle and threw chairs and other objects.
Two men, aged 18 and 31, were injured in the incident and were taken to Juan Ramon Jimenez hospital.
People feared a terror attack with the memory of last month’s Barcelona attack still raw, a local councillor said.
Enrique Gavino said: “People suffered panic attacks because they understood that there was a vehicle and we are in a sensitive situation.”
But according to police, the incident in Huelva was sparked by a “fight”.
The driver was arrested after attempting to flee the scene.
This is a breaking story, more to follow…