“The target was the diplomatic vehicles. They were trying to get inside the embassy when the suicide car bomber attacked them,” said the head of an independent news agency.
“There are many people killed and wounded, the police guards protecting the embassy were also hurt. I saw wounded and dead people everywhere,” he added.
According to the Afghan Health Ministry most victims were queuing for visas.
No one has yet claimed responsibility for the attack but Afghan authorities point the finger at the Taliban who have been behind a series of attacks in recent months, mainly in the south and east, with the capital relatively quiet.
In April, there was an assassination attempt against the Afghan President Hamid Karzai in the city. And earlier in the year, Taliban militants launched an attack on a hotel killing tens of people.
India and Afghanistan have developed a number of trade and economic projects in recent months. By contrast, Pakistan has been repeatedly accused of not cooperating in the fight against the Taliban, favouring their trafficking, allowing the Islamist militia to operate training camps on the Pakistani side of the border.