CNN Turk reported that none of the casualties were seriously hurt and they were being treated in a local hospital.
The car, parked near a police station in Semdinli, in the province of Hakkari, "was loaded with a large amount of explosives by members of the PKK terrorist organization," the Hakkari governor's office said.
Security forces set up checkpoints at the entrances to the border town, where power has been cut since the blast, CNN Türk said.
Some 67 houses and workplaces suffered damaged.
"We ask our people and the authorities to be vigilant on the subject of terror activities," the governor's statement said.