At least two people have been hurt after the white Peugeot struck revellers in Nimes this morning.
An official close to the investigation said the man was hospitalized and police investigators were unable to question him immediately or to verify reports he was heard at the scene shouting "Allahu akbar", Arabic for "God is great".
The terrifying incident happened outside a venue called L'instant T at around 1.15am.More news: Washoe County Human West Nile Case Most Likely Acquired Locally
A police spokeswoman said road barriers stopped the vehicle before it hit the pedestrians head-on in the town of Nimes, which celebrates its annual grape-harvesting festival this weekend. The man was not known to police for suspected radicalisation.
The region's public prosecutor Eric Maurel said the suspect tried to flee but was caught and roughed up by the crowd.
France has been on high alert following a string of jihadist attacks in recent years, often by people who have become radicalised or claim to have acted in the name of the IS group.More news: Matthew Perry hospitalised for months after surgery
A 19-tonne cargo truck was driven into crowds in Nice following Bastille Day in 2016.
More than 130 people were killed in the 2015 terror attack that saw jihadists target the Bataclan Theatre in Paris where American rock band Eagles of Death Metal were playing.More news: Two Koreas open joint liaison office in North - pool report
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