The accident occurred in Rajender Nagar mandal on Outer Ring road, police said.
Those killed included Varun Pawar, 20, grandson of Andhra Pradesh's former Director General of Police (DGP) and now an advisor to the Telangana government P. Ramulu.
The tanker driver escaped after the collision. According to eye witnesses, the car was being driven at high speed.
The injured youth was shifted to a private hospital and was reported to be in a critical condition.