He said they saw Black Power members arming themselves with golf clubs and other impromptu weapons prior to the incident with about 30-plus Mongrel Mob members eating at Shani's restaurant next to McDonald's in Taradale.
They then said they saw the two gangs meet on the road as a brawl broke out and then a vehicle jumped the kerb, crossing over a pathway and going on the wrong side of the road.
The witness believed the vehicle was aiming towards the Mongrel Mob members narrowly missing several, after which they then began hitting the vehicle with weapons.
During that incident he said this was when they heard "five shots" apparently aimed at the vehicle.
A spokesman from the local Thirsty Liquor store next to Shani's said that once they saw the fighting start on the street they immediately got their customers to stay inside and locked the doors.
"It was a scary situation but it seemed to be further out on the street from us so we just made sure we kept our customers inside and safe."
Police said initially in a statement there were no reports of injuries but have since confirmed a man has since been taken to hospital. Hawke's Bay Today understands one gang member had received injuries above his eye in the altercation and had since been located.
Hawke's Bay Hospital have confirmed the man injured who in his 20s is currently in a stable condition.
There were about a dozen officers on the scene with the area evacuated and diversions in place around the Gloucester St roundabout outside McDonald's.
A scene examination has been completed and diversions were released a few hours after the incident, with Police continuing their enquires.
Napier MP and Police Minister Stuart Nash said that this is "totally unacceptable behaviour to have go on in our communities".
Although he didn't know specifics he said that more has to be done to "cut down on this anti-social behaviour".
He confirmed he would follow up with the district commander on the events.
Nash said they the government had done a lot of work so far in ceasing over 1500 illegal firearms from gangs and criminal organisations and works to further this by increasing Police numbers across the country, boosting Police numbers by 27% in Eastern District (114 extra officers on top of 423) the highest increase nation wide.