Firefighters had to use the jaws of life to cut both victims out.
Sergeant Ray Wylie said initial inquiries suggested speed, not wearing seatbelts and a breach of licence were factors in the crash.
The speed limit on the street is 50km/h.
"Further analysis is required to determine whether alcohol is a factor," Mr Wylie said.
Police are appealing for witnesses who may have seen the white-coloured Subaru on Main Street immediately prior to the crash to contact either the Edgecumbe Police on 07 304 9004 or the Whakatane Police on 07 308 5255.
Also last night, an 18-year-old woman was killed in Meeanee, Napier, when the vehicle she was in left the road and struck a tree.
The crash happened about 11.40pm on Awatoto Road, when the 18-year-old male driver lost control of his vehicle, which travelled through a stop sign and across an intersection before hitting the tree.
Police said the driver and a 15-year-old passenger were taken to Hawkes Bay Hospital.
The extent of their injuries is not yet known.
The female passenger died at the scene.
Firefighters had to cut the three people from the wreckage.
Police have not yet determined the cause of the crash, however speed is believed to be a factor.
Napier police are keen to speak to anyone who may have witnessed the crash or seen the a Silver Holden Acclaim driving near the Meeanee area prior to the accident.
- nzherald.co.nz with The Daily Post
