The car contained a group of youths and was spiked following an alleged burglary in Palmerston, Sergeant Matt Lee said.
Two teenagers were arrested — one pepper-sprayed and bitten by a police dog — and inquiries were continuing to locate "multiple youth".
The drama unfolded early yesterday when officers spotted the car travelling south from Oamaru towards Dunedin, about 4.30am.
"It is alleged that the vehicle and the occupants have been involved in a burglary of a store in Palmerston," Sgt Lee said.
The Toyota Aqua was allegedly stolen from Invercargill and used earlier in a petrol drive-off in Oamaru.
The car continued south towards Dunedin and was spiked by police on State Highway 1 about 10km north of the city near Pigeon Flat.
But it failed to stop and continued travelling at low speed towards Dunedin.
It was then spiked a further two times before it had reached the Woodhaugh area, Sgt Lee said.
Having continued to drive the car through Dunedin on its tyreless rims, sparks flying, the youths ultimately abandoned the vehicle in Forbury Rd.
"When police located the abandoned vehicle, it was confirmed that all four tyres had been punctured by the road spikes."
One was pepper-sprayed and bitten by a police dog as they attempted to flee the scene.
Another was chased down on foot.
They will both appear in the Youth Court.
Inquiries were continuing to locate others alleged to be involved, Sgt Lee said.
