Investigators are still determining if the driver acted deliberately. Italian Prime Minister Giorgia Meloni called the incident in Modena "extremely serious."
The driver tried to flee after the car crashed into a shop window, Modena Mayor Massimo Mezzetti told local media.
"He was seen with a knife in his hand, but he didn't manage to stab anyone. It seems like he was trying to hit someone," the mayor said.
Police have arrested the driver and taken him to headquarters for questioning, Mezetti added.
"He had been treated at a mental health center for schizoid disorders, but we lost track of him after that initial period of observation in a care facility," city prefect Fabrizia Triolo told a news conference.
Investigators said there was no immediate indication the driver was under the influence of drugs or alcohol. His home was searched as part of the investigation.
Italian Prime Minister Giorgia Meloni called the incident "extremely serious" in a social media post.
"I trust the person responsible will be held fully accountable for his actions," she wrote on X.
Edited by: Sean Sinico Advertisement
