Officials say, the car blew up in the southern Madina area of the Capital city, ripping through shops and food stalls.
No group has claimed responsibility for the attack, but pointers are directed at al-Shabab terrorist group whose senior commander on Saturday vowed to target President Mohamed Abdullahi’s supporters.
This is the first major attack in Mogadishu the presidential election which took place earlier this month.
About 28 people were killed last month in a hotel bomb attack by militants in Mogadishu.
From all indications, the attack brings to limelight the challenge before the new president whose fragile government relies heavily on external support and does not control other parts of the country.