Mother and baby recovering after NSW crash

A young mother and her baby are recovering in hospital with serious injuries after a car knocked them to the ground during a crash in Newcastle.

A crowd of bystanders rushed to lift the car off the woman who was trapped underneath after it reversed into a parked taxi, mounted a footpath and then hit her before ploughing into a Penkins street cafe on Friday afternoon.

The woman, believed to be her 20s, was treated at the scene for head and leg injuries.

She was taken to John Hunter Hospital and remains in a serious but stable condition, while her six-month-old baby was taken to hospital with possible head injuries.

The driver of the car, believed to be in his 70s, was not injured and underwent mandatory blood and urine testing.