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 at 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.