Cousins Helina Kotlarova and Zaneta Krokova were holding hands when they were mown down by a Volkswagen Golf at about 7.15pm on Saturday, their family said.
Helina, 12, died at the scene while her 11-year-old cousin was rushed to hospital where she remains in a critical condition.
Cops said the driver of the car failed to stop following the crash on Ashton Road near to Copster Hill Road, sparking a huge police manhunt.
Helina’s mother Sylva and father Robert raced to the scene but she was declared dead by medics as her distraught mother stroked her hair.
On New Year’s Day, the family of seven sisters and one brother, who came to England from the Czech Republic eight years ago, sat in tears mourning Helina.
Her father sat with his head in his hands, his wife weeping, while other red-eyed members of the family sat in silence in the kitchen of their terraced home.
Helina’s sister Sylva, 19, told how the family rushed to the scene 100 yards from their home seconds after the crash.
She said: “Her face was all bloody. She did not breathe. Mum was touching her hair.”
Her older sister held back the tears as she paid tribute to the youngster, describing her as a beautiful girl who loved singing and dancing.
She told Sky: “I can’t believe that’s my sister she’s too young to die.”
Miss Kotlarova said the girls were with a larger group of family and friends waiting on the other side of the road, one of the main routes in and out of Oldham town centre.
“These are tragic circumstances where a young girl has lost her life”
Sgt Lee Westhead
The two cousins then started to cross the road outside the shop.
She said: “But as they came to the other side of the road the car ran them over. They were holding hands.”
Witnesses described the car as driving fast and “flying away” after the collision. Seconds later friends ran to Helina’s home to alert the family.
Sgt Lee Westhead, from Greater Manchester Police’s serious collision investigation unit, said: “These are tragic circumstances where a young girl has lost her life.
“I would urge anyone who knows anything to do with this collision to contact police immediately.
“Another girl is currently fighting for her life in hospital and specially trained officers are supporting the families involved.
“Officers are at the scene trying to establish exactly what happened while we have a dedicated team trying to locate the driver of the car.”
Roads around the area were cordoned off as authorities searched the scene for evidence.
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