The blast in the mainly Kurdish city of Diyarbakir caused part of the workshop an annex to the city's main police headquarters to collapse.
One repair worker, who was trapped beneath the debris, later died in a hospital, the Diyarbakir governor's office said. It said other people injured in the explosion were being treated in hospitals, but did not provide a number.
The cause of the explosion was under investigation. Interior Minister Suleyman Soylu suggested, however, that the blast was caused by the repair work and was not the result of an attack.
The state-run Anadolu Agency said surrounding buildings and cars parked nearby were damaged in the blast.
Ambulances, police and rescue teams rushed to the scene in the city's Baglar district, where thick smoke was seen rising into the air.
Turkey is on edge following a string of deadly bomb attacks carried out by Kurdish rebels or Islamic State militants in the past two years.
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