A five-year-old girl and her family were taken to hospital after the collision on Maybury Road in Edinburgh at around 12.30am on Friday.
The accident happened as a stolen grey Audi A3 was overtaking a row of four or five cars on the wrong side of the road, causing the family’s BMW to swerve and plough into the dead man’s Peugeot 206.
The road was closed for most of Friday. Detectives are carrying out a major investigation and said “significant resources” had been deployed to catch those responsible.
The 1.6 litre petrol Audi A3 had been stolen from a house in the Liberton area on 17 April and officers are trying to establish where it has been since.
Detectives say it was seen travelling at high speed from the Barnton area towards the Maybury roundabout around 12.30am on Friday. It drove along the chevron area to overtake a row of traffic and headed into the opposing carriageway, causing the BMW X5 to swerve and collide with the Peugeot 206 travelling in the opposite direction.