The incident in Germany’s capital happened just after 7am on Sunday outside the Bahnhof Zoo station. Seven people were injured, including three seriously, when the car came off the road.
One person was reportedly trapped underneath the vehicle and had to be resuscitated.
Emergency services attended the scene including 60 firefighters and two helicopters.
Pictures show the area cordoned off and the damaged black Mercedes.
The cause of the incident is not yet known, Berlin’s fire department said.
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Berlin’s fire department tweeted: “For reasons not yet clear, a car got off the road and drove onto the sidewalk.
“7 people were injured, 3 of them seriously.
“One person had to be resuscitated.
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The driver of the car has been arrested, police said.
An investigation has been launched into the incident.
Berlin Police tweeted: “The driver of the accident car was arrested.
“The investigation into the cause and cause of the accident is ongoing.”
It added there is currently no evidence of political or religious motivation.
German newspaper Bild reported that the driver lost control of the car while turning left at excessive speed.
The vehicle reportedly hit a traffic light before ploughing into the crowd.