German police said the car sped up and lost control as it mounted the pavement and colliding with pedestrians.
Officers said one person was being treated for life-threatening injuries after getting trapped by the car.
Berlin’s Fire Department triggered a ‘mass casualty’ alarm after the crash.
Some 60 firefighters rushed to the scene, along with 22 large vehicles and a rescue helicopter.
Police said the teenage driver had reversed onto the pavement in a bid to escape officers who were conducting a traffic stop. The driver is said not to have a licence, and was carrying three other teenage passengers.
He and the other passengers were arrested at the scene.
Germany has been left reeling after a series of car-related attacks in recent months.
Earlier this month, two were killed and several more injured in Mannheim when a man drove into a crowd before killing himself.
The attack was not thought to be related to terrorism, with the driver believed to have been mentally ill.
That came weeks after a suspected Islamist terrorist drove his car into a crowd in Munich, injuring almost 40 people.
In December, a car drove into a group of pedestrians at a Christmas market in the German city of Magdeburg, killing six and injuring around 200.