The accident took place late this evening near the Baroda bridge under the Chakradharpur police station, about 90 kms from here.
The car's driver lost control of the vehicle and hit the victims, who were taking part in a religious function on the side of a road, Sub-Divisional Police Officer, Chakradharpur, Sakaldeo Ram, said.
The officer said that two people died on the spot and about a dozen others suffered injuries. The condition of three people was serious, he said.
Currently, seven injured people are admitted at the hospitals, police said.
Senior police official rushed to the spot to take stock of the situation, sources added.