The impact of the collision was such that the car broke into three pieces on Sarabha Nagar road, police said.
Gagan Sharma and Rajjat Dua were killed in the accident, said Parmjit Singh Pannu, Additional Deputy Commissioner of Police (ADCP).
The owner of the car, Dhani Ram, who was rushed to a local hospital with multiple injuries, is stated to be in critical condition, the ADCP said.
All of them were of the age group between 25 to 27 years.
Police have registered a case and started investigation.