Thirty others were wounded in the explosion in the Habibiya area, near the vast district of Sadr City in northern Baghdad, the official said.
A hospital official and a colonel in the Baghdad police confirmed the toll from the blast, which struck in an area where many car dealerships are found.
Yesterday a car bomb explosion in southern Baghdad killed at least four people, according to the same sources.
The Iraqi capital was rocked by a wave of deadly suicide bombings during the first days of 2017 but relatively few explosions had been reported since.