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"Initial report suggests attachment of foreign substance in the rear of the vehicle. However, the exact cause of the explosion will be known only after further investigation by the Delhi police," Special Secretary (Internal Security) in the Home Ministry Ajay Chadha told the media in New Delhi.
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Chadha said four people, including an employee of the Israeli embassy, were injured in the incident.
"Driver of the car, who is an Indian citizen and one lady employee of the Israeli embassy have sustained injuries. Two other civilians, who were travelling in another car, have also sustained minor injuries," he said.
The special secretary said the incident took place at around 3.20 pm near Aurangjeb Road crossing.
The Israeli embassy car exploded close to the mission in New Delhi in a suspected coordinated terror attack after a car bomb involving an Israeli embassy vehicle in Georgian capital of Tbilisi was defused.
Reports suggested two youth riding on a motorcycle tailed the Israeli embassy vehicle on Aurangzeb Road in the high security zone, not far from prime minister's official residence, and allegedly placed "something" in the rear of the car when it had stopped at a traffic signal.