"Ronnie was thrown off and hit the wall. I'm not sure if he died at the scene or when he got to hospital."
Varcoe added dad Ronnie was an experienced sidecar swinger.
"Both Ronnie and Erwin are very well known on the scene and I can't imagine what Erwin and the family must be going through," Varcoe said.
"It was a freak accident and as the speedway community in Invercargill is very tight, it will hit everyone really hard."
Speedway New Zealand president David Jones said an Auckland investigator had been sent to Oreti Park.
"This was a very tragic accident and the speedway community is grieving with the family," Jones said.
"We have sent an investigator to the scene to ensure our rules and regulations were met."
Invercargill police said they were investigating the crash.