The incident happened today (14/1) at about 1.45pm in Battle Square, Oxford Road.
The victim, a 20-year-old man, was stabbed and his vehicle, a silver BMW, stolen from him.
It is believed that this was an isolated incident.
Three men have been arrested in connection with the incident and are currently in police custody.
Investigating officer Detective Sergeant James Jackson, based at Reading police station, said: “I understand that this incident may cause some concern in the community, but I would like to reassure people that we believe this was a targeted attack.
“We have also made three arrests in connection with the offence.
“I would like to appeal for any witnesses who may have been in the area at the time, or who may have relevant CCTV or dash cam footage to come forward, quoting reference number 43210017714.
“Alternatively, you can call Crimestoppers anonymously on 0800 555 111 or make a report online.”