Police said militants targeted security forces convoy in the attack.
The dead and injured have been rushed to Lady Reading Hospital. Condition of six injured is said to be critical.
Police and Law Enforcement Agencies (LEAs) have cordoned off the area.
Deputy Commissioner Peshawar Javed Marwat has confirmed that 15 people have been killed and 30 wounded in the attack.
Hospital sources said 16 bodies and 32 injured were present in the hospital.
Bomb Disposal Squad (BDS) said that at least 40 kg explosive material was used in the attack.
Ten nearby shops and vehicles were badly damaged.
Security forces have launched search operation in the area, Marwat added.
AFP adds: "The car bomb was parked in a market packed with the general public. When the FC convoy comprising of three vehicles passed by, the bomb exploded and hit a vehicle in the convoy," police official Shafiullah Khan told AFP.
"But many civilians were killed and wounded in the attack because there was a big rush in the market at the time," he added.
"So far, we have reports that two Frontier Corps soldiers have been injured. We don't know about any other losses," a military official told AFP on condition of anonymity. AFP
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