Terrifying footage has captured the moment a driver mounted a pavement and mowed down pedestrians before being shot dead as he tried to stab police with a knife.

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Horrified bystanders can be seen diving for cover as the motorist ploughs through a pedestrianised boardwalk as shoppers browsed a market in Lages, a town in the southern state of Santa Catarina.

Six people were struck by the car before the driver was shot dead when he tried to attack police with a knife after officers surrounded him.

Brazilian police said the motive for the attack is unclear at this stage but have not ruled out that it was a terrorist act.

One of the people run over, a 33-year-old woman named as Janaina Antunes Correia, is said to be “serious.”

 

The others, who include a police officer hit while he was on his motorbike, are not believed to have been seriously injured.

The driver has been identified locally as Giovanni Oliveira Fornari, 41, from Ponta Grossa in the state of Parana, according to Brazilian media.

He is not thought to have a criminal record.

He died after being taken to hospital with a gunshot wound to his abdomen.

 
Shoppers were browsing a market when the motorist ploughed into pedestrians