The ill-fated vehicle was heading towards Chandigarh from Amritsar when the accident happened on G T Road national highway, near here, police said.
The car, which was travelling at a high speed, caught fire and was soon engulfed in flames, they said.
Three persons, including the driver, were burnt alive, police said adding the reason behind the tragedy was said to be short circuit.
The driver of the car was identified as Surinder Singh, aged 57, a resident of New Garden Colony in Amritsar.