Officials say they are working hard to fix the damaged cable and get people stranded in 15 other cable cars safely back to ground.
The vehicle crashed after its cable snapped in Gulmarg in Jammu and Kashmir, police said.
The dead were identified as Jayant Anderaskar, his wife Manisha and their daughters Anagha and Jhanvi.
The three locals who lost their lives were identified Mukhtar Ahmad Ganie, son of Ali Mohammad of Chuntipathri, Baba Reshi, Tangmarg (a local guide), Farooq Ahmad Chopan of Baramulla and Jehangir Ahmad Khanday of Wapora Tangmarg. It severed the lines and the cable vehicle plummeted to the ground, the official said.
Two local guides were also killed in the incident.
The bodies of the deceased are being sent to their homes while the injured have been shifted to hospital for further treatment. The accident also left 100 people stranded in other cars. It severed the lines and the cable auto plummeted to the ground, he said.
Since its inauguration in 1998, it is the first of its kind of incident in the Gulmarg cable auto service, which was built by the French firm Pomalgalski.
As per former Chief Minister of J&K, Omar Abdullah's tweet (@abdullah_omar) this is first-of-its-kind accident in the valley.
He said the chief minister also directed a high level inquiry to find the causes or lapses, if any, that led to the accident. The second phase of the cable auto was made operational in 2005. Gulmarg is a famous tourist destination for skiing, and Gondola service of Gulmarg is hugely popular, drawing thousands of people in summer.
He wrote: "What awful news!"
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