Watch the shocking moment two vehicles ram each other in a demolition derby style road rage that almost ends in disaster in Perth

An astonishing vision has emerged of two motorists involved in an ugly road rage incident that almost went horribly wrong.

The shocking incident involving a small hatchback and a 4WD car took place in front of shocked onlookers at the Liberty petrol station in Calista, south Perth, on Friday evening.

The video, filmed by a bystander and shared by popular Australian Instagram account Brown Cardigan, showed the hatchback appearing to prevent the ute from driving away.

The smaller vehicle parked shortly in front of the ute and then performed a burnout as smoke filled the air.

The hatchback circled quickly and struck the side of the 4WD.

The impact pushed the ute onto its side, almost ending in a rollover.

The screech of brakes could be heard before the hatchback sped off with its bonnet completely shattered.

The ute driver started to follow him but then stopped to talk to a bystander who was filming.

The man explained to the shirtless motorist that he had been given license plate information.

“That's my…” the driver replied before the video cut off.

According to police, the drivers of the ute and the hatchback are known to each other.

The heavily damaged hatchback (pictured) came second in the incident

The investigation into the road rage incident continues.

The footage, which has since gone viral, divided viewers.

Many saw the funny side.

“I want to see a rematch,” one person wrote.

Another added: “City of Kwinana Liberty Thunderdome.”

Others asked for more context about the incident.

“I need the backstory,” one viewer commented

Even Channel 10 television host Osher Gunsberg joined the debate.

“Yeah, when the fuel is 2 cents cheaper at the United down the road, it gets you damn moving, doesn't it?” he joked.

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The 4WD car was also damaged during the road rage incident. The police are investigating