Emergency services were called to a single-vehicle crash on State Highway 1, at the intersection with Thomas St, about 11.20pm on Monday.
The 29-year-old driver and the victim cannot be named because of a court-imposed suppression order.
At the scene of the crash, baby items, including a nursing bottle and a broken child’s seat, were visible.
The section of road where the crash happened was being resealed.
One lane of the road remained open until noon yesterday.
The man had been placed under arrest on unrelated matters, Sgt Bond said.
Counsel Andrew Dawson told the Dunedin District Court yesterday his client was "conscious but in a great deal of pain".
The driver was called before court in his absence in relation to breaching a court order.
The man has not yet been charged over the crash but the court heard that criminal prosecution was "likely".
Judge David Robinson said the man agreed to be remanded in custody until next week and was granted name suppression until that appearance.
- Additional reporting Rob Kidd
