As thousands of worried children looked on, Mr Claus, whom the Otago Daily Times understands to be an experienced sleigh driver, was towed along Moray Pl by rescuers.
There were rumours late yesterday afternoon of sabotage by disgruntled elves and the event's organiser, Santa Parade Trust chairman Dean Driver, last night said someone he referred to as "the Grinch" might have been behind the problem.
"But we prevailed," he said.
Mr Claus remained jolly throughout the entire incident, afterwards saying: "Ho, ho, ho".
The incident began towards the end of the annual Santa Parade - perhaps not surprisingly the 13th so far - when a truck carrying the Oxo Cubans band broke down just before the Octagon.
Halfway up, it became clear a small vehicle powering the float would not make the steep incline, and both were towed to the top of the hill before travelling down Moray Pl and along Princes St to the Octagon, arriving to a rousing cheer from the crowd.
Mr Claus, before taking the stage during a concert in the packed lower Octagon, commented reindeer were a more reliable power source than the combustion engine.
Until the incident, the parade went without a hitch along a George St packed with people.
Cowboys and Indians, sea lions, unicycles, multinational burger chains, marching girls, fire engines and purple dragons all made an appearance.
And if anyone was unsure of the season, Snoopy and the Red Baron gave up their fight for a day in a goodwill-based act to the accompaniment of a very well-known song.
Mr Driver, who took over the parade for the first time this year, said he had never seen so many people packing the main street.
"Everyone was in raptures."
