Police laid out road spikes which eventually blew out the ute's two front tyres but despite that, the driver continued to flee.
Hundreds of people lined the streets in Taradale, Greenmeadows, Onekawa, Marewa and Maraenui to watch the chase unfold. The driver evaded police several times and often disappeared from view.
The pursuit ended at about 12.30am on Kennedy Rd and two people were arrested.
Two police cars were also damaged during the incident.
Paul Forster heard a "hell of a noise" outside his Marewa house and decided to get up and investigate. He saw the pursuit, which went past three times.
Each time the driver came back the ute was more damaged and there were more people following him.
"Those rubberneckers were shocking, they just need to leave it alone."
Mr Forster said at least 20 cars were closely following the police, some running red lights just to keep up.
Mr Forster's video has been viewed more than 3000 times.
Casey Steward described the scenes as "chaotic".
The young mother was woken in her Thackeray St home to the "deafening" screech of the rims on the road.
She said it was upsetting to see the way Napier people reacted.
"Some people were cheering for him - he is not a renegade, he is a criminal who put a lot of people in danger."
Hundreds of locals took to social media to discuss the chase as it happened.
• "I cannot believe the people following the chase. Police will be disappointed with Napier city people and so they should be."
• "Hindering the chase, putting themselves in danger."
• "Disappointed with my home town."
A spokeswoman for Napier City Council said the damage to Napier's streets was still being evaluated.
"Apart from a sign knocked over, NCC is still trying to assess the damage and costs."
Police have lambasted the "rubbernecker" drivers who followed the pursuit in procession but what has police seeing red are the motorists who almost formed a drag chain as the police pursued the stolen vehicle through streets at low speed.
Acting Hawke's Bay area commander Inspector Rob Jones said the actions of those nosey motorists was highly dangerous.
"This is just plain stupid and quite frankly beyond comprehension."
He said the last thing they needed was members of the public getting mixed up in an already volatile incident.
At one point police were forced to stop chasing the stolen Hilux and instruct drivers not to follow them.
The pursuit speeds varied because of the unpredictable actions of the driver, the residential area and other traffic on the roads.
"While the pursuit did slow down considerably at times, there was good reason for this and, ultimately, no one was injured during the incident, including police staff or the driver of the stolen vehicle."
Napier man Matt Woods had his boat stolen earlier this month and believes Monday night's incident was related.
"I spoke to the owner earlier on and police have confirmed it was his ute."
Mr Woods has yet to receive any news about his boat but his fingers were crossed.
Chase pair in court
A man and a woman have appeared in court on charges relating to Monday night's chase through Napier streets.
Jamie Lesley Jones, 30, of Marewa, Napier, faced seven charges and Daniela Dellow, 20, of Waiohiki, faced three charges.
Jones was charged with the unlawful taking of a signwritten, yellow Toyota Hilux belonging to Hastings earthmoving firm M.W. Lissette, on February 27. The charge carries a maximum penalty of seven years' jail.
Relating to events between 11pm on Monday and 1am yesterday, Jones was charged with failing to stop for police, reckless driving, resisting a police officer and possession of methamphetamine, cannabis and a pipe for the use of methamphetamine.
Appearing in Hastings District Court yesterday, he was remanded in custody for the hearing of a bail application in Napier District Court today.
Dellow faces six charges of unlawfully getting into the vehicle and possessing methamphetamine and a pipe for the use of methamphetamine on that date.
She was remanded on bail to appear in Napier District Court on March 30.