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Merseyside Police Assistant Chief Constable Jenny Sims said the Bank Holiday Monday incident was not being treated as terrorism and was believed to be an isolated incident following the arrest of a 53-year-old man at the scene.
The force said the suspect was the driver the of the car, white, British and from the Liverpool area.
At a press conference on Monday evening, Dave Kitchin from North West Ambulance Service (NWAS) said 27 people were taken to hospital and 20 people were treated at the scene, with four children among the injured.
He said two of those taken to hospital, including one of the children, suffered serious injuries.
Nick Searle, Merseyside Fire and Rescue Service chief fire officer, said four people who were trapped under the car, including a child, were rescued by firefighters.
Witness Les Winsper, 55, told The Guardian of how the incident unfolded in front of him.
He told the newspaper: “People started banging on the (car) windows.
“Then they smashed the windows and he panicked and put his foot down.
“He then hit someone and that person has gone in the air and he’s ploughed through the rest of them.
“I’ve never seen anything like it.”
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