The mishap took place at Rangasaipet area on the Warangal-Khamman highway. The deceased have been identified as Anudeep and Abhinav while the other two students Krishna Prasad and Pranoy Roy sustained serious injuries, Mamnoor police station inspector Srinivas said.
The four second-year B-Tech students of S R Engineering College were returning to Warangal after attending Anudeep's birthday party at his residence in Panthini village, he said.
The car first rammed into a roadside vegetable shop and then hit the tree, the officer said.