Footage circulating on social media from a residential security camera appears to capture the moment the car plunges into the stalls while other videos show the driver being rushed to a nearby police car as angry bystanders run after him shouting.
"The accident resulted in the deaths of several people and left others with injuries of varying severity," the navy said, adding that it was co-operating with authorities to establish the circumstances surrounding the crash.
The navy statement did not provide an exact number of fatalities but local media reported at least six deaths.
Colonel Jorge Guaita, police prefect for Vina del Mar, told reporters the driver said he did not remember anything and that the cause for the incident is yet to be determined.
"Witness statements from people who saw the crash indicate that the vehicle was travelling in the correct direction of traffic, at high speed," Guaita said, adding that when the vehicle mounted the sidewalk, it spun around.
"Fortunately, the bus stop brought it to a halt. Otherwise, it might have continued forward and caused even more damage," Guaita added.
Chilean President José Antonio Kast said on X that the incident had plunged "the entire country in mourning".
"All state institutions are working to assist those affected and to establish with complete clarity the responsibilities for this painful event," Kast said.
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