Fire and Emergency New Zealand said they were alerted to a school bus that caught fire at 3.54pm.
They said everyone on board at the time was evacuated safely.
Fire crews are still working to extinguish the blaze.
One fire engine, one water tanker, and a support vehicle are in attendance.
Locals on Facebook said they were told via a text that the cause of the fire was a “mechanical issue”.
One local called the incident a “frightening sight”.
Police said a section of Mangawhai Rd has been closed following the fire.
The road is expected to be reopened once the scene is cleared.
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