The crash occurred in Witherwack, Sunderland, at around 9.40pm on Wednesday evening, Northumbria Police said.
The two women, who were residents at the Highcliffe Care Home, died on Thursday.
The blue BMW had been reported stolen from the Fenham area of Newcastle at around 9.20pm on Wednesday.
Two men, both aged 21, were previously arrested on suspicion of theft of a motor vehicle, while one was also arrested on suspicion of dangerous driving.
They have both been further arrested on suspicion of manslaughter and remain in police custody, Northumbria Police said.
This breaking news story is being updated and more details will be published shortly.
Please refresh the page for the latest version.
You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow us on WhatsApp and subscribe to our YouTube channel to keep up with the latest news.
