Police sealed off streets in Fartown after a clash in a quiet road.
One vehicle was left on its side and two others disappeared after reports of an affray in Ripon Avenue.
One resident reported hearing two loud bangs and seeing men run off with baseball bats.
There were also initial reports of a gun being fired but police said they could find no evidence.
A large number of officers were called to the scene in both Ripon Avenue and in Dewhurst Road, on the opposite side of the busy Bradford Road.
A Mitsubishi car lay on its side in Ripon Aveue but police said no-one had been hurt.
Julian Cannonier, 46, a self-employed entertainer whose front window overlooked the scene, said: “I was in my front room watching TV when I heard a bang, and then there was a second bang.
“I looked out and saw two guys run round the back of the car, they both had baseball bats and ran off down the street.”
Neighbour Salvinder Chauhan, 44, said he had left his home shortly after 1pm for half an hour, and was greeted by the overturned vehicle when he returned.
There were also large stretches of Dewhurst Road sealed off with police tape, as was an alleyway running from the road into Blackhouse Road.
At one point officers carried out a detailed search of the road.
Blackhouse Road resident Shaun Wrigley, 49, said: “I saw a helicopter flying overhead earlier.
“I went into my garden and there were two policemen walking down, they were asking me if I’d seen anyone running down, which I hadn’t.
“It feels like not a day goes by without something happening in Fartown.”
A West Yorkshire Police spokesman said: “Police were called to Ripon Avenue, Huddersfield, at about 1.44pm this afternoon to a report of an affray incident.
“Officers remain on scene in the Ripon Avenue area following the incident in after a collision between a black Audi car and a Mitsubishi Shogun.
“A second car, thought to have been a blue Vauxhall Corsa, is believed to have been present and involved in the incident.
“Both the Audi and Corsa made off from the scene.
“No-one has been injured and initial enquiries remain ongoing to determine precisely what has taken place.
“Anyone who witnessed the incident is asked to contact Huddersfield CID on 101. “