Watch: Video of arrest of alleged gunman in Auckland

A witness heard a gunshot before police handcuffed a man and administered first aid.

A scared driver caught in the middle of a major firearms incident in Auckland said he heard a gunshot before a swarm of officers arrested a man as he lay on the road.

The man allegedly held two members of the public at gunpoint as he attempted to flee police in lengthy pursuit across Penrose yesterday before he was eventually shot at by officers.

The 36-year-old man is recovering in hospital and faces three counts of aggravated wounding, aggravated assault, burglary, reckless driving and failing to stop.

He is expected to appear in the Auckland District Court tomorrow.

One witness, who only wants to be identified as Jaskirat, was in his car behind a vehicle waiting at a red light on Great South Rd around 11am.

He said the alleged gunman had been allegedly driving on the "wrong side of the road" and crashed into cars in front of him that were waiting at the lights.

Amid the chaos, Jaskirat managed to film the arrest.

He heard a single gunshot ring out then noticed seven to eight police cars approach.

"The only thing I saw was the police officials tackling the guy. They were busy arresting him."

He said they had pinned the man on the road and were pulling his hands behind his back into handcuffs, and "giving him first aid".

"The policeman tried to tie his hands at the back ... it was a hard job," Jaskirat said.

A woman has been taken into custody after yesterday's dramatic carjacking at gunpoint in central Auckland yesterday. Photo / Hayden Woodward

"Police did a great job and saved the community. [They were] telling people to step out and stand out of their cars and let them do their job."

Jaskirat said he was driving his normal route home at the time.

After the arrest he said he drove away from the incident.