The victims, all belonging to a family were travelling in a car from Hyderabad to East Godavari district to attend a condolence meet when the mishap occured late last night, they said.
The accident took place when the drowsy driver rammed the car into a stationary lorry on NH-16 near Pulla village in West Godavari district.
Two persons including the driver were killed, said CI M Venkataswara Rao of Bhimadolu police station, where a case was registered.
The deceased have been identified as A Ramulu (driver) and B Nani.
According to police, the car was totally mangled in the impact of the collision.