"A car bomb exploded in Tel Aviv. Apparently it is a criminal incident, a settling of accounts," police spokesman Micky Rosenfeld told AFP.
However, according to the Associated Press, Rosenfeld did not rule out that the blast may have been politically motivated.
Public radio said that the attack appeared to have targeted Nissim Halperon, head of one of Israel's top organized crime families, adding that Halperon did not appear to have been in the car when the bomb went off.
Halperon has already escaped seven attempted assassinations, including one six months ago in the Ramat Gan suburb of Tel Aviv, reported AFP.
Israeli organized crime gangs have been engaged in an often violent struggle in the past few years, prompting the police to create a special task force, Unit 443, dedicated to tackling the issue.
In recent years, around a dozen Israelis were believed to have been killed in violence related to fighting between the various crime families.