At least three people are dead and another 34 injured after an SUV ploughed into a crowd of people in Graz, Austria.
Eyewitnesses say the driver rammed into crowds at up to 90mph before he got out and began randomly stabbing bystanders, which included the elderly and policemen.
A seven-year-old boy and a woman are thought to be among those killed in the onslaught on the main shopping street of Herrengasse, before the SUV reached the city's main square.
The governor of the state has described the driver as a 'deranged lone assassin'.
The National Police Director, Josef Klamminger, said the man, who is believed to be a 26-year-old Austrian, was suffering from 'psychosis' related to 'family problems'.
The attacker is believed to be married with two children.
The driver did not resist when he was arrested by the police - who say he acted alone - and they have no reason to believe it was an act of terrorism.
He killed two people while speeding towards the main square where he ploughed into an outdoor dining table full of people, a spokesperson for the regional police said during a press conference today.
One of those killed is reported to have been on a bicycle when they were hit by the dark green SUV.
The man is reported to have stopped the car outside a local business, got out of the car and attacked a couple with a knife.
The busy square was hosting an event relating to the Austrian Formula One Grand Prix which is being held nearby, in the Red Bull Ring in Spielberg, in Steiermark.
A local resident told Sky News that her friend saw people flying through the air, adding: 'Apparently he was attacking elderly people with a knife.'
Dr Sea Rotmann says her friend told her how the driver was 'doing between 100km-an-hour and 150km-an-hour' on the busy road.
A waitress at the Pronto restaurant on the main square told the Kleinezeitung website she heard screaming before she even saw the driver.
Simone Zucca added: 'He raced through the front of the restaurant without braking... He then caught a boy who was thrown against the wall.'
Another eyewitness told the BBC he saw bodies lying on the ground 'covered in blood'.
Other witnesses described the sound of the SUV knocking chairs in the square flying as being 'like gunfire'.
About 60 ambulances converged on the scene and the Austrian auto club sent four helicopters to bring the victims to hospitals.
The city council released a statement which read: 'At 12pm there was an appalling incident in the centre of Graz, which has caused major alarm and left the city deeply shaken.'
Provincial Governor Hermann Schuetzenhoefer said at least one of his injured victims is in a critical condition.
Local media has reported that six adults are currently in a critical condition.
He added: 'We are shocked and dismayed... there is no explanation and no excuse for this attack.
'We have much to do to ensure cohesion in our community, which has clearly become difficult for many people.'
The incident took place in Graz, Austria's second largest city, and police officers have now sealed off the area.
German-language website Krone reported that the man arrested by police is of Bosnian origin.
'People were screaming in panic and ran into the surrounding shops to get to safety', an eyewitness told the website.
Police chiefs told the Austrian Kleine Zeitung newspaper that the suspect got out of the SUV and started stabbing people with a knife.
Austria's APA news agency said two bodies were lying near the scene, covered with blankets.
Bishop Wilhelm Krautwaschl, the Bishop of Graz, shared his condolences on Facebook.
'I am shocked by what's happened, I pray for the victims and for those who have rushed to help then', he said.
The victims will be remembered at a memorial service, which will take place at the Grazer Stadtpfarrkirche church in the centre of the city at 6pm today.
Mayor Siegfried Nagl - who was himself an eyewitness to the attack - ordered black flags of mourning flown from all municipal buildings and cancelled street fests and other city events
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