He did not provide details as to how the death occurred.
The far-right group, composed mostly of men in their 20s and 30s, were heard chanting "white lives matter!", "you will not replace us!", and "Jews will not replace us!"
A video shown on CNN showed a silver sedan driving at high speed into the crowd before reversing along the same street.
Michael Nigro, a photojournalist from Brooklyn, told reporters shortly after the incident he heard the screech of tires and saw a gray Charger accelerate toward the group. They believe that your counter-protest helps their cause.
Nigro says it was "chaos and mayhem" as bodies flew.
It was not immediately clear if the collision was intentional.
A short brawl erupted after at least one of the counterprotesters apparently deployed a chemical spray, which affected the eyes of a dozen or so marchers, according to The Washington Post.
Hospital official says one dead, 19 injured after vehicle plows into a group of protesters in downtown Charlottesville.
The driver of the auto is in custody, a state official told The Associated Press. The president has received previous criticism for being slow to condemn acts of hate done in his name. "As long as that expression is peaceful, that is their right".
The "Unite the Right" demonstration slated for Saturday was reportedly in response to the state's decision to remove a statue of infamous Confederate General, Robert E. Lee from the campus.
Cliff Erickson leaned against a fence and took in the scene.
"Both sides are hoping for a confrontation", he said. During last year's presidential election, 80% of its voters chose Hillary Clinton.
"Kessler sued, saying the change was a free speech violation".
"White supremacists have descended upon Charlottesville again to evoke a reaction as ugly and violent as their beliefs", he said.
The City of Charlottesville said 15 people were injured at the site of the rally.
Earlier in the day, police were involved in breaking up a conflict between the original protesters and those protesting the white nationalism protests.
He blamed Charlottesville officials for cancelling the rally.
"It is now clear that public safety can not be safeguarded without additional powers, and that the mostly out-of-state protesters have come to Virginia to endanger our citizens and property", McAuliffe said.
If Friday night was a preview of what's to come this weekend in Charlottesville, Virginia, it's going to be bad. "Let it only serve to unite Americans against this kind of vile bigotry".
The future of the statue is to be decided by a judge in a ruling expected in the next few weeks. It was previously called Lee Park.