The incident took place near the Dolgarh-Patiya highway intersection, where at least 12 pilgrims were reportedly struck by the vehicle while walking along the four-lane road.
The crash sparked outrage among locals, who intercepted the driver as he allegedly attempted to flee the scene.
An angry crowd then attacked the driver and set the Scorpio on fire.
Crowd torches Scorpio after crash
Videos from the spot showed the SUV engulfed in flames, with thick plumes of smoke rising above the highway.
Other visuals showed people surrounding the vehicle and smashing its bonnet and windows with sticks.
Police teams rushed to the area to bring the situation under control and begin an investigation. Forces from nearby districts were also being mobilised as a large police presence was seen at the site.
Driver allegedly drunk
Locals alleged that the driver was under the influence of alcohol when the crash occurred and had been driving a brand-new Scorpio N.
A video from the vehicle purportedly showed an empty alcohol bottle inside the car. The allegation has not yet been independently confirmed by authorities.
The driver's alleged attempt to flee after hitting the pilgrims further enraged the crowd, which caught hold of him and assaulted him before police intervened.
Pilgrims walking towards Ambaji
The victims were part of the large number of devotees who travel on foot across Gujarat every year towards the famous Ambaji temple.
The temple is expected to attract around 40 lakh devotees this year, with large groups of pilgrims using highways and roads leading towards the shrine.
Pilgrims and pedestrians have previously raised concerns over speeding and reckless driving along the route, where warning signs and public notices have also been issued by the local administration.
Police are investigating the circumstances surrounding the crash, including the driver's alleged condition and the exact sequence of events leading to the collision.