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The accident took place at 8:30 pm on Sunday near Ghiyaghi in Banjar subdivision, they said.
Five tourists died on the spot while two others succumbed to injuries at the hospital. Three students of the Indian Institute of Technology Varanasi in Uttar Pradesh are among the deceased, they added.
Six of the deceased have been identified as Saurabh, Priyanka Gupta, Kiran, a resident of Delhi, Rishab Raj, and Anshika Jain and Aditya from Uttar Pradesh, Kullu superintendent of police Gurdev Sharma said.
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BJP MLA from Banjar Surender Shourie streamed a video on Facebook at 12.45 am on Monday, informing people about the accident that occurred in his Assembly segment.
The injured were first taken to Banjar hospital from where they have been referred to Kullu regional hospital for treatment after being given first aid, the MLA said.
The Banjar MLA thanked the district administration and the locals for carrying out rescue operation despite darkness.