Dalston Lane is closed to vehicles in both directions and buses are on diversion after the incident in Dalston Lane opposite Brook Community Primary School.
Emergency services were called just after 10.20am and an injured elderly woman and man were both treated by the London Ambulance Service.
Two fire engines from Homerton attended the scene opposite Brook Community Primary School in Sigdon Road, and 10 fire fighters had the fire under control by 10.45am.
Nearby Navarino Mansions resident Ken Levy said: “The driver was in the car with his wife, he collapsed in the road because of smoke inhalation, three men got them away from the scene.”
The car was completely destroyed in the blaze.
The cause of the fire is under investigation.
Bus routes 30 and 56 are subject to delay.
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