Published Thursday, 27 March 2014
Damage to the car in the Creggan area. (© Presseye)
It happened at Carrickreagh Gardens in the Creggan area at around 10.40pm on Wednesday.
There were no reports of any injuries but the car was damaged in the blast.
A number of local homes were evacuated overnight and the area was closed to traffic while police and army bomb squad officers investigated the scene.
The security alert ended at around 5.10am on Thursday and families have been allowed to return.
A police spokesperson said: "ATO have confirmed that a viable explosive device had detonated inside a car parked in the area.
"A number of items have been taken away for forensic testing."
This car was parked adjacent to the front door in a hugely built-up area, and could have killed. While there may have been a target last night, the victims were the neighbours whose lives were disrupted when they were forced out of their homes.
Pat Ramsey, SDLP MLA
SDLP Foyle MLA Pat Ramsey has blamed dissident republicans for what he has described as "a reckless attack."
"People in the area are telling me that because of continuing difficulties in the Creggan area they are actually considering moving on. There is no place for these paramilitary-style attacks in society, and such attacks by dissident republicans are not done in the name of anyone," Mr Ramsey said.
"The ballot box has clearly shown people want politics to be on the road to peace, but this attack last night could have seriously injured someone or worse, left someone dead.
" The SDLP are working to create a better future for everyone and, this city, particularly the Creggan area, will not be used as a dumping ground for paramilitary attacks."
Sinn Féin Councillor Kevin Campbell has condemned those responsible.
"I received a number of calls from residents living in the Carrickreagh Gardens area to say that an explosive device was thrown into a parked car there," he said.
"While it is not yet known what group may have been responsible for leaving this device, what is known, is that this action happened in a built up area.
"I would call upon anyone involved in this type of activity to desist."
Police have asked anyone who witnessed the incident or anyone with any information to contact detectives at Strand Road Police Station on the new non-emergency number 101.
© UTV News