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The driver, allegedly drunk and doing burnouts before the collision, crashed on a notoriously dangerous street in Bankstown.
Locals heard loud engine revving before the prang took place on Fenwick Street.
The car fishtailed into a parked ute and neighbours rushed to the scene before paramedics arrived.
Firefighters pulled the driver, a 26-year-old man and his passenger, 23, from the car.
The man escaped with minor injuries but his female passenger wasn’t so lucky.
She was left with critical head injuries and remains in intensive care at Liverpool Hospital.
The driver allegedly failed a roadside breath test and was taken to hospital, where he remains under police guard, for further testing and treatment for a fractured collarbone.
Neighbours said the street was notorious for hooning and have begged the council to put measures in place to slow cars down.