Police said the suspect, an asylum-seeker who lives in Munich, was known to authorities for drug and theft incidents.
The Munich Public Prosecutor’s Office and Bavarian Central Office for Combating Extremism and Terrorism has taken over the probe due to “indications of an extremist background,” a police news release said.
Thus far, no others are known to be involved in the incident.
Munich police said the suspect will appear before a judge Friday.
Press photos from the scene show the car involved was a white Mini, with personal belongings including shoes, a pair of glasses and a stroller strewn across the road.
In a news conference, Bavaria Gov. Markus Söder confirmed the incident is being treated as a possible attack. Earlier, Munich police said at least two people were seriously injured.
Munich Mayor Dieter Reiter said that children were among those injured, The Associated Press reported.
“This is simply terrible, ladies and gentlemen, when you receive the news, that once again someone rammed their car into a group of people. There are a lot of injured. It’s a slap in the face,” Söder said.
