The players were members of the Harbour Rugby Football Club premier and senior teams, he said.
A Port Chalmers Pool lifeguard, who also heard the man, "unloaded" a dry powder fire extinguisher on the car fire and two rugby players sprayed water on the fire with garden hoses, he said.
The people who responded quickly were to be commended, Mr Holland said.
"They did a great job and saved us a lot of work ... due to their efforts, the worst of it was out when we arrived, while the rest of them put the young fellow under a cold shower in the house."
A St John spokesman said the man was taken to Dunedin Hospital with serious burns to his left arm.