"The fall was obviously significant", Walter Milan of the Alpine rescue service told Rai News 24.
"Serious accident on the Stresa-Mottarone cable vehicle". The cause has not been determined.
The wreckage of a cable auto is seen on the ground after it collapsed near the summit of the Stresa-Mottarone line in the Piedmont region, northern Italy.
The cable auto was closed between 2014 and 2016 for maintenance work.
ANSA said the cable vehicle carried 11 people and that two children had been brought by helicopter to a hospital in the northern city of Turin.
Sunday was a attractive, sunny day in the area, and Milan hypothesized that families were taking advantage of the weather to enjoy a day in nature after months of lockdown.
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Giovanni Toti, president of the neighbouring region of Liguria, noted that the tragedy had occurred just as Italy was emerging from months of Covid-related restrictions.
Mottarone reaches a height of 1,491 meters (4,900 feet) and overlooks the picturesque lake and the Alps around the Piedmont region of Italy. Another injured person, an adult, had been also been taken to hospital by helicopter, she added.
The mountain features a small amusement park, Alpyland, that has a children's roller coaster offering 360-degree views of the scenery.
The Stresa-Mottarone cable vehicle line advertises a panoramic, 20-minute trip up the mountain, offering a view of seven lakes at the peak.
In February 1998, a low-flying USA military jet severed a cable at Cavalese, a ski resort in Italy's Dolomites, killing 20 people.
Italy's transport minister, Enrico Giovannini, was following the rescue effort, which involved the deployment of three helicopters to the mountainside.