Murray said he saw the police following a car south along Fairy Springs Rd towards the central city when the lights at the intersection with Lake and Clayton Rds turned red.
Murray said he saw the car trying to squeeze between the two lanes of vehicles stopped at the lights.
A woman, who was stopped at the lights in her car, told the Rotorua Daily Post she noticed a car trying to squeeze between her car and another car in the lane beside her.
She said it gave her "a hell of a fright" as the car scraped along the side of her car.