A video posted to social media on Sunday shows a blue Toyota hatchback being pushed off the road by two men on foot who appear to have abandoned a white Hyundai sedan in the middle of the northbound lane of Thomas Burns St, near the intersection with Bombay St.
Drivers could be seen swerving around the fracas as it unfolded.
While one person from the white car drove it further up the road, his associate could be seen kicking the blue car while its driver looked on.
The confrontation continued with the driver of the blue car walking backwards, confronted by the man who had been kicking his vehicle.
He turned and fled across the road through traffic as the other man from the white car ran towards them, the video showed.
Senior Sergeant Anthony Bond, of Dunedin, said police were called to the scene about noon on Sunday.
It appeared the driver of one car cut off the other while changing lanes, Snr Sgt Bond said.
The driver who did the cutting-off took offence to being honked at, stopped his car and he and his brother got out, Snr Sgt Bond said.
They were alleged to have jumped on the bonnet of the other car that honked at them, smashing its windscreen in the process.
Both were arrested and investigations were ongoing.
A least one of them would appear in court charged with wilful damage, while the other might be dealt with through an alternative resolutions process, Snr Sgt Bond said.