Two people are in hospital after they were hit by a car believed to have been doing burn-outs in the Port Stephens area in NSW overnight.

At about 11.40pm, emergency services were called to Somerset Drive, North Arm Cove.

Officers were told a white Ford Falcon sedan had been performing burn-outs in front of a crowd of people when the driver lost control and hit a power pole and two people standing next to it.

The car then caught fire and the driver fled.

A 20-year-old woman and a 14-year-old girl were treated at the scene for pelvic and leg injuries before being taken to John Hunter Hospital in a serious condition.

The car has been seized for forensic examination.

Police now wish to speak to the driver.

Anybody with information, or mobile phone or dashcam footage, is urged to contact Port Stephens-Hunter Police or Crime Stoppers on 1800 333 000.

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