SHANGHAI, Feb. 2 (Xinhua) -- A minivan crash in downtown Shanghai that left 18 people injured on Friday morning was a traffic accident, Shanghai police said.

Shanghai police said the accident was caused when the driver lost control and veered onto the sidewalk.

The accident happened around 9 a.m. near the People's Park in Huangpu District, according to the official account of the municipality on social networking site Weibo.

Witnesses said the vehicle caught fire before crashing into a fence in front of a coffee shop.

Investigations discovered the driver, surnamed Chen, 40, had been smoking in the vehicle, which possibly led to the fire. He is suspected of illegally transporting dangerous goods like gas canisters, Shanghai police said.

Chen, a native of Jiangxi Province in east China, works for a metal product company in Shanghai, according to police.

He and 17 injured passers-by were rushed to hospital for treatment. Chen was seriously injured, and injuries of the other 17 people are not life threatening.

Chen is now in police custody.