The man's car was blown up in a busy street in the western district of Charlottenburg about 8am local time.
"Our investigators are working on the assumption that it was an explosive device that caused this," said Carsten Mueller, Berlin police deputy chief spokesman.
"[The] explosion occurred inside or on the vehicle."
Police do not believe there was a terrorist motive to the explosion.
Nobody else was injured despite heavy traffic at the time of the blast, Mr Mueller said.
The scene was sealed off while bomb experts checked the vehicle but no further explosives were found.
Nearby residents were told to close their windows and stay off their balconies.
Images from the scene showed the wreckage of the car - a silver Volkswagen Passat - on the wide road.
Its windows were blown out and front end smashed in.
The vehicle was heading towards the city centre when it exploded.
Detectives were still trying to determine the dead man's identity, Mr Mueller said.
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