The Tata Sumo car, which was on its way to Warwan from Kishtwar, fell into the gorge in the Afti area, a police officer said.
The police and army have launched a search operation and so far recovered five bodies, he said, adding that the others are being recovered.
The two injured persons have been hospitalized, he said.
Meanwhile, in another accident today, a bus turned turtle in Falie Mandal area of Jammu district, injuring 16 persons.