It was not yet clear who had carried out the bombing.
The Islamist group al Shabaab has frequently carried out bombings in Mogadishu and other towns, seeking to destabilise the western-allied central government.
"I have counted seven dead bodies of civilians,” Major Nur Hussein, a police officer, told Reuters by phone.
He said the car exploded just as a minibus carrying civilians was passing by. The death toll was likely to rise, he said.
A Reuters witness at the scene said he saw at least three dead bodies and a damaged minibus with blood stains on it.
Reuters
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Seven killed by car bomb explosion in Mogadishu
MOGADISHU (Reuters) - Seven people were killed when a car bomb exploded near a bus stop in a district of Somalia's capital Mogadishu on Thursday, police said.