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A high-speed crash has resulted in two people being taken to hospital, one with potentially life threatening injuries.
An eye-witness has told police he thought the Nissan Skyline car involved was going 140km/h when it passed him in central Hamilton, shortly before the crash.
The Skyline was travelling
at such a speed that its wing mirror was found about 50 metres away from the crash site.
Waikato road policing manager inspector Leo Tooman said that just after 3.00am, police came across a smoke cloud in the middle of Hood St with a group of people standing nearby cheering and shouting.
A Nissan skyline emerged from the smoke and drove past an unmarked police car on the wrong side of the road, he said.
"The white car, a 1996 Nissan Skyline has headed back towards Anglesea St on the wrong side of the road, narrowly missing a pedestrian, while the unmarked patrol car has done a u-turn to follow," Mr Tooman said.
He said police pulled out of the pursuit because of the speed the Skyline was travelling at.
"A review of the tape shows his decision to withdrawal was taken 15 seconds into the pursuit, describing the speed of the Skyline as ridiculous," Mr Tooman said.
A short time later, police estimated the Skyline to be doing over 160km/h, he said.
Mr Tooman said a second patrol car, heading in the same direction but not connected with the initial pursuit, came across the crash, about 2km north of where the pursuing officer abandoned the chase.
"The driver of the Skyline has lost control of his car, crashing into the forecourt of the Honda dealership on the opposite side of the road.
"An independent witness from the Supermarket across from the crash scene, who is a bit of a car enthusiast, said he estimated the car was travelling about 140km/h when it passed him," Mr Tooman said.
Several cars in the Ingham-Booth dealership have been damaged and the Skyline appears to be written-off.
The north end of Anglesea St was closed for over three hours while Waikato Serious Crash staff investigated the crash. The Police Complaints Authority will be notified of this morning's crash, he said.
Police are appealing to people who witnessed this morning's Skyline crash to come forward.
Mr Tooman said one man was nearly run over by the Skyline while crossing the road, shortly before the accident.
"We're also keen to hear from people who may have witnessed the Skyline doing a burnout on Hood St shortly before that," he said.
The driver of the Skyline remains in the intensive care unit at Waikato Hospital.