A man has been charged after he allegedly assaulted a woman with an axe before driving over her with her own car.

The 66-year-old was sitting in her Ford Mustang on Illawarra Circuit in Worrigee on the NSW South Coast on Saturday afternoon when she was attacked.

Shortly before about 1pm, police were called to nearby Rayleigh Dr following reports a man was armed with an axe and hammer.

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When police arrived at the scene, the man allegedly threw the axe at their car.

He retrieved the axe and then ran to a home around the corner Illawarra Circuit where he struck the woman multiple times with the weapon.

The man then forced her out of the car before running her over as he drove away.

The woman was treated at the scene for multiple leg and torso injuries before being taken to hospital in a serious but stable condition.

She has since been transferred to St George Hospital for further treatment.

The Air Wing police located the vehicle at about 2pm on the Princes Hwy heading south, and a pursuit began when the driver allegedly failed to stop.

The Ford Mustang continued through Nowra, Bomaderry, Berry, Gerringong and Kiama, with the man allegedly reaching speeds of 180km/h in an 80km/h speed zone.

Police attempted to use road spikes to stop the driver, however he allegedly swerved the car towards a highway patrol officer, only just missing him.

The pursuit ended when the Ford Mustang was seen driving on the opposite side of the Princes Highway at Kiama Downs before colliding with a ute.

The 25-year-old driver attempted to run from the scene but he was stopped and held by bystanders until police arrived.

He was arrested and taken to Wollongong Hospital under police guard, while the driver of the ute was also taken to hospital for assessment.

On Sunday the driver was released from hospital and charged with several offences including possessing a knife in a public place, speeding and larceny.

He was also charged with three outstanding offences, including two domestic violence related offences.

The man was refused bail to appear in court on Monday.