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The friendly race, held at Skyline Queenstown’s luge track, was held to usher in next week’s rally.
Race4Life, which grants "wishes" to palliative care patients, has been named the rally’s chosen charity for the next five years.
Race4Life general manager Viv James said the luge race was a nice way to begin the event.
"There’s no doubt we’re going to win," she joked before the showdown.
She said the level of support the charity received from Queenstown was huge, with more than 20 businesses helping out on a regular basis. The races were a close-run thing, but it appeared the Targa team had the edge.
Targa Rally managing director Peter Martin said Race4Life was a charity that "fits in nicely" with the rally’s purpose - bringing together people from all walks life who share a love of cars.
This year’s rally starts in Invercargill on Monday, and will wrap up with a prize giving at Coronet Peak in Queenstown next Sunday.