Motorist Deborah Vallance claimed the former City striker said: "I can't believe what has happened." as he climbed out of the wreckage of his Mercedes CL55 coupe near his home in Meriden.
Mrs Vallance told the trial how she had watched the Mercedes allegedly round a bend on the wrong side of the road "at some speed" before the impact with a Renault Scenic, which was travelling ahead of her Ford Escort estate. The crash
killed Douglas Graham and severely injured his wife, Maureen, and driver Albert Frisby.
She added: "The only way I can describe it, to be honest, is that he was driving like a madman. "It looked as if it was on the wrong side of the road. It just hit with such an impact. I don't think it had time to brake.
"All I can remember is the driver getting out of the car and putting his hands on his head and bending down and saying: 'I can't believe what has happened, I was only doing 30mph.'
Mrs Vallance pulled over and raced to the Graham's car,despite smoke pouring from its engine and tried to help the occupants. As she shouted for help,she saw a man fitting Hughes description climb out of the Mercedes.
Her evidence was questioned by defence counsel David Fish QC who put it to her that she had fabricated the words she alledges Hughes said as it was not included in her original statement.
Earlier,the court had been told that Hughes had been drinking bourbon on the night of the incident. During his interview with police two days after, the Baggies striker admitted to drinking two Jack Daniels and sipping a third but not touching a fourth that had been bought for him.
Mr Inman prosecuting said that it was impossible to ever know exactly how much Hughes had drunk as he fled the scene and disappeared for a day and a half before handing himself into the police at 9.40am on Monday.
Inman said: "You are perfectly entitled to ask yourselves the question: what possible explanation could there be for running away from the scene and staying away,so to speak until Monday morning,if it was not to escape being breathalysed?
"The police knew who he was,he knew he was going to have to give an account and the prosecution says it's common sense - there's only one answer to that and it is to avoid the breathalyser."
The trial continues