Afghan interior ministry following a statement said the incident took place in Mosa Qala district of southern Helmand province early Wednesday morning.
The source further added the explosion took place after a civilian vehicle struck with a roadside bomb planted by Taliban militants in Mosa Qala district.
According to local authorities at least eigh people including 7 women were killed and 3 others including an Afghan woman were injured.
No group including the Taliban militants has so far claimed responsibility behind the incident.
Local authorities blame Taliban group for such incidents as Taliban fighters frequently use improvised explosive device to target Afghan and coalition security forces which normally leads to civilians casualties.