55-year-old Naidu, who was heading to Srikakulam after attending a marriage ceremony in Visakhapatnam, met with a road accident.
The TDP leader's car hit an oil tanker from behind. He was taken to Rajiv Gandhi Institute of Medical Sciences (RIMS) around 2 am and was declared dead around 3:30 am. According to doctors, the TDP leader died over profuse bleeding.
The deadly accident took place near Ranasthalam in Srikakulam district in north coastal Andhra Pradesh, about 700 km from Hyderabad.
Other passengers, who were travelling along with Naidu, have been admitted to RIMS and doctor informed that two of them suffered seeious injuries.
Naidu is survived by wife, a son and a daughter and his last rites will be performed at Nimmada in Srikakulam district, his native village, later on Friday.
Yerran Naidu was a four-time MP and also served as Union Minister for Rural Development from 1996 to 1998.