The incident occurred following a quarrel between the two.
The startling video which went viral online showed the shovel loader backing up and pushing a car to the side of the road, state run People's Daily Online reported.
It hit the car several times, causing extensive damage to it. A man was seen running out of the car during the period.
The accused, Liang, was arrested by the police whereas the victim, Zhou, who was trapped in the vehicle was rescued by the firemen, but later succumbed to his injuries.
"Liang had disputes with the car driver, who was the employer of the same organisation," police said, adding "they had a quarrel on Aug 7 which led to the alleged attack on the same day.
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