At least 51 people died in the attack claimed by Daesh which comes a day after another blast killed and injured dozens in the Sadr City district of Baghdad.
A car packed with explosives blew up on Thursday in the south of Baghdad, killing at least 51 people and wounding 55 others, security sources and medics said.
Daesh, which is on the defensive after losing control of eastern Mosul to a US-backed Iraqi military offensive, claimed responsibility for the bombing in an online statement.
The death toll could climb further as many of the wounded are in critical condition, a doctor said.
TRT World's Shamim Chowdhury reports.
Security sources said the vehicle which blew up on Thursday was parked in a crowded street full of garages and used car dealers, in Hayy al-Shurta, a Shia district in the southwest of the city.
TRT World spoke to Ammar Karim who reported on the situation from Baghdad.
Thursday's attack came a day after a suicide bomber detonated a pick-up truck in the capital, in the predominantly Shia suburb of Sadr City, killing at least 15 and wounding 50. That assault also targeted a street full of used car dealers.
Daesh has stepped up bombings in Iraq in retaliation for a US-backed campaign that dislodged the group from most Iraqi cities it took over in 2014. Daesh also control parts of neighbouring Syria.