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The AFP news agency cited a French police source who said the vehicle "deliberately" rammed a group of three students - two of whom were badly injured, and one who was not as seriously hurt.

The three injured, one male and two female, are all at their early 20s, said the consulate.

A 23-year-old woman was the most seriously injured following the incident outside a college.

The injured students were taken to a hospital in Toulouse.

Three of the school's students, reportedly Chinese nationals, sustained injuries during the incident.

The driver was arrested immediately afterwards but was not on a list of known extremists, according to a French police source quoted by AFP.

He told police that he "heard voices" telling him "to hurt someone", Ladepeche newspaper reported.

Police say the man is known for previous minor offences, especially drugs-related.

Couilleau said the driver claimed he acted deliberately and was arrested.

One hundred Chinese students were enrolled this year on an MBA course at the institute, the local paper said.

The incident occurred outside a college in the suburb of Blagnac, According to local police it a "deliberate" act of violence meant to cause injury.