A woman who lived on the street said witnesses told her the car had careened onto the footpath, hitting a fence and plants before it reached the kids.
The hit and run followed another crash in Manurewa early when police attempted to stop a stolen vehicle about 4.45pm.
The vehicle fled and a short time later collided with another vehicle on Russell Rd.
A police spokesperson said the police pursuit started around Magic Way on Alfriston Rd and the intersection Great South Rd, and lasted less than three minutes.
A female passenger in the fleeing vehicle was serious injured and a male driver from the other victims vehicle had moderate to serious injuries.
Both were taken to Middlemore Hospital.
The driver of the stolen vehicle fled from police on foot.
A police spokeswoman confirmed this morning that both fleeing drivers were still at large.
Meanwhile, the Labour Weekend road toll is at one after a fatal crash near Burnham in Canterbury just after midnight.
The single-vehicle crash happened on State Highway 1, near Thomsons Rd, police said in a statement.
Another person who was in the car was seriously hurt and has been taken to hospital.
Police said they were unable to release any further details about the person who was killed as formal identification of the body was yet to take place and next of kin needed to be told.
The official holiday road period runs from 4pm on Friday until 6am on Tuesday, October 24. Last year's Labour Weekend road toll was three from three fatal crashes and 94 reported injury crashes.
