The incident happened outside a public school in Queens, the New York Daily News reported.
Witnesses said the sport utility vehicle was heading into a parking lot, but instead drove onto a sidewalk and into the crowd of students.
Six men lifted the vehicle to rescue two girls who were pinned underneath.
"I heard a boom and someone yelling, 'Oh my God!'" said David Foubister. "I helped them lift it. There were 6 or 7 other guys. There were two girls underneath the car. It was something you don't want to see."
The Department of Education said one of the victims suffered serious injuries but was expected to survive.
The driver of the vehicle stayed at the scene and spoke with police, the newspaper said.