A man posted a message on Facebook saying he and his wife had been driving through the area when the incident happened.
He said about six young people came running out of a driveway.
"Sounded like gunshots, they all piled into a black Ford Falcon and drove up Xmas Rd, didn't get the plate though."
Police say officers remain at the scene.
"There have been no reports of injuries and the alleged offender or offenders had left the scene. They have not yet been located.
"A scene examination is underway and Police are speaking with witnesses."
The police Eagle helicopter has been hovering above the suburb for at least the past hour.
The incident follows a spate of shootings in Ōtara last month involving rival gangs the Killer Beez and Tribesmen in South Auckland - with at least five gang-related shootings in two days.
Armed police were brought into the suburb to counter the outbreak, before the two gangs reached an apparent truce to curb the bloodshed last week.
The Weekend Herald revealed last week that 350 people had been shot across the city in the last five years as authorities wrestle with worsening gun violence.
Auckland mayor Phil Goff has called on police to boost the number of frontline officers and crack down on "lucrative" drug trafficking and organised crime.
He met this week with Deputy Police Commissioner John Tims to communicate his concerns about the rising number of shootings.
Police Minister Poto Williams confirmed she has also been briefed about the level of Auckland gun crime. She is urging Auckland residents to stay calm and "look out for each other" as police work to quell the bloodshed.
- More to come
