The gun fired from a car on State Highway 5, near Te Pōhue, has yet to be recovered with police also appealing for any sightings of a late model, dark coloured, Isuzu ute.
Police are investigating a firearms incident in which shots were fired from a car travelling towards Taupō about 5.15pm on Sunday.
The vehicle was stopped by armed Police as it entered Taupō and two people were taken into custody, CIB Taupō area manager Detective Senior Sergeant Ryan Yardley said.
"No one was injured during the incident but there was damage caused to one other vehicle.
"The firearm used in the incident has not yet been located."