Sergeant Tony Woodbridge, of Oamaru, said a crash in Beach Rd, near the intersection with Gees Rd, Kakanui, was reported about 9.30pm on Monday.
A Nissan Pulsar car drove off a grass lay-by and plunged over a 7m-high cliff, Sgt Woodbridge said.
The two occupants of the vehicle were stranded on a small gravel beach, surrounded by high wet cliffs and an incoming high tide.
A sizable response from emergency services ensued, Fire and Emergency New Zealand (Fenz) crews from Kakanui, Weston and Oamaru attending along with ambulance and police units from Oamaru.
Cliff Rescue members from the Otago Search and Rescue squad were dispatched from Dunedin, as well as cliff rescue members from Fenz in Dunedin.
However, it was the rescue helicopter from Dunedin which saved the occupants of the vehicle by winching them to safety.
The driver was transported to Oamaru Hospital with minor injuries and the passenger released after being checked by paramedics.
Both men were from Oamaru and in their early 20s, Sgt Woodbridge said. They were wet and cold but thankful for the assistance they received.
Police were continuing to investigate how the crash occurred, but alcohol and speed were believed to have been factors.
"We would ask that people take care near cliffs like this as both men were very lucky not to have received serious injury," Sgt Woodbridge said.
Helicopters Otago chief executive Graeme Gale said the incident might have had an "absolutely tragic ending", but fortunately a helicopter was able to get there in a very short space of time.
Conditions were average, low cloud, waves, cliffs and rocks making for a complex rescue operation.
Ultimately, the rescue was "a great outcome" and the rescued people were "very lucky", Mr Gale said.
