Witnesses have said at least one person is dead.
Horrific images have begun to emerge of people laying on the ground, including a woman who appears lifeless.
The speeding vehicle smashed into pedestrians, according to an announcement at nearby Reuters news agency headquarters.
Reports are emerging from the scene as witnesses claim the driver was heading against traffic before mounting the pavement.
One injured pedestrian told Reuters the driver’s actions appeared to be “intentional”.
The car crashed into a pole and came to rest at 45th Street and Broadway.
At least 10 people have been injured after a car hit pedestrians in Times Square
Those struck by the dark coloured car are being placed on stretchers, wrapped in blood-stained blankets, in the busy tourist spot, witnesses have claimed.
The New York Fire Department has confirmed there are at least 20 injured on site.
CBS said the driver has been removed from the red Sedan.
Speeding car ploughs into pedestrians in Times Square
Thu, May 18, 2017
A driver has driven a vehicle into crowds in New York's Times Square, leaving at least one person dead
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The New York Police Department has sealed off the area.
Buildings are in lockdown and people are being forced away from the scene.
Witnesses said at least 20 people were being treated for injuries on the ground after the collision at the Midtown Manhattan tourist site.
Reports are emerging the driver has been arrested.
Footage has emerged of a dark haired man, appearing to be in his 20s, being arrested by police.
Terror in New York as car hits pedestrians: Emergency services on scene
New York in terror as victims lay injured on the ground
Terror in New York: Pedestrians stop to help those hit by the car
He is surrounded by officers and marched across the road, appearing to be injured.
Officers then force him into the back of the car.
The New York Police Department said it is not believed at this point the crash was terror related.
President Donald Trump "has been made aware of the situation in Times Square and will continue to receive updates", his spokesman Sean Spicer said.
New York terror as police rush to understand how car ended up hitting pedestrians
Car pictured in Times Square after hitting pedestrians in Times Square
David Shuster Tweeted from his nearby office: “Vehicle just drove on sidewalk Times Square on 7th between 42nd/43rd, People down. Police on scene.
“Buildings in lock down, including ours.”
Another witness said people were “screaming and running”.
Witnesses have said people were 'screaming and running' away from Times Square
13 total patients currently reported at scene of motor vehicle accident in Times Square pic.twitter.com/ySwtL6ZLoc
— FDNY (@FDNY) May 18, 2017
A US Government official said there is “no evidence” the Times Square crash is linked to terror.
Despite reports the man is known to officers, the Government said his identity is currently “unknown”.