The blast follows a vehicle bomb attack in southern Baghdad on Tuesday that killed four people.
Almost 50 people were injured when the vehicle packed with explosives blew up near auto dealerships and workshops in the south of the city in the Bayaa neighbourhood.
Baghdad was rocked by a series of deadly bomb attacks over the new year period, but calm had begun to return to the city over the last month.
At least 11 people were also killed in a suicide auto bomb attack claimed by IS Wednesday in a northern neighbourhood of the Iraqi capital.
Islamic State (IS) terrorist group has claimed responsibility for the blast.
Hussey confident Starc will test Kohli
I've learnt a fair bit along the way as captain. "The previous year has been a roller-coaster ride with regard to results". It could be argued that the Australian batsmen failed to find the right balance between attack and defence at the time .
The Islamic State group has claimed it was behind the explosion at a auto dealer's lot.
"There was one here, we carried him", he said, pointing to a spot behind him. An official said that similar incidents shook the same neighborhood on Tuesday, after another explosion killed four people and injured 25 in a very crowded market area.
The auto bomb has claimed the lives of at least 48 people.
Thirty others were wounded in the powerful blast in the Habibiya area, near Sadr City, a Shia majority neighbourhood in the Iraqi capital.