Ms Malhotra said she had lived next door to Ms Kaur for more than three years.
"Rajwinder is such a lovely lady and a fantastic neighbour ... Jasnoor was such a beautiful, bubbly little girl. Before they left she came over to show me the new dress she was wearing and I told her she looked like a princess. She smiled and waved at me as they drove away. I'm still in shock and just can't believe this has happened."
Ms Malhotra said because she had a young child herself she had not been able to go to the hospital to support Rajwinder but her husband and lots of other friends had done so.
"It's very, very sad and my heart goes out to Rajwinder and her family," she said.
Jasnoor was a student at Katikati Primary School and her brother attended Katikati College, and it was also understood that Parmeet attended Katikati Primary School.
Katikati Subway restaurant manager Pooja Verma said the whole Kaur family were regular customers, and she had taken a particular shine to Jasnoor.
"They are a very nice family and I am very, very sad about Jasnoor. She was so cute, and such a bubbly, friendly little girl. I used to tell her mother that every time they came in," she said.
Ms Verma said the whole Indian community across Katikati was in mourning.
Family friend Sonu Mundi said he was shocked when he heard news of the crash.
Jasnoor was good friends with his young daughter and she was a "bubbly girl", he said.
Mr Mundi said Jasnoor was a lovely, friendly girl and news of her death was hard to accept.
He travelled to Waikato Hospital yesterday morning to visit Ms Kaur and the others involved in the crash. Mr Mundi said Prabjot had suffered spinal injuries in the crash and had been airlifted from Waikato to Auckland's Starship hospital yesterday.
"I think they are planning on moving Rajwinder to Auckland so she can be with her son."
Mr Mundi said Ms Kaur was struggling with the death of her daughter and was very upset.
"You can imagine how hard it must be for her."
Ms Kaur had suffered a leg fracture and had internal injuries, he said.
The father of Prabjot and Jasnoor was living overseas but it was possible he would travel to New Zealand to support his family.
It was understood Rajbir Kaur was still in a serious condition in Waikato Hospital while Parmeet was improving.
Another family friend Anu Bhardwaj told the Bay of Plenty Times Weekend Ms Kaur was in a high dependency unit in Waikato Hospital and lots of friends had gone to the hospital to support her.
"We are only allowed in two at a time, she said.
"We are all very worried about them. It is not very nice."
Katikati College principal Neil Harray said Prabjot was a year 8 student at his school.
"Prabjot was well-liked and respected and always had a positive attitude. He was a player in the school's under-14 rugby team, which was expected to be playing a game today.
"It will be challenging for the team," he said.
Mr Harray said when the school heard the news of the crash guidance counsellors told staff and informed the boy's classmates.
He said the school was giving the family "as much space and support" as they needed.
"We hope he keeps fighting. He has that sort of spirit," he said.
"He is in the best place at the moment where he can get great care ... our thoughts and prayers are with him and the rest of the family at this time."
