A Fire and Emergency New Zealand spokesman said initially the Willowbank crew responded to the fire in North Rd, near Cottle Rd, with one truck attending about 4pm.
After a second call indicating the vehicle on fire was part of a crash, they called for extra resources.
A crew from the Dunedin station responded; however, on arrival it was found the car was not part of a crash.
The vehicle was engulfed in fire and crews were working to extinguish the blaze, the spokesman said.
A reporter at the scene said the road was closed for some time and police were at the scene to assist with traffic.