'Going to kill someone': Man charged after showroom set alight in front of terrified customers

Customers at a Sydney car dealership say they feared for their lives after a man allegedly torched the showroom before threatening them with a hammer.

The 69-year-old has been charged with several offences and is due to face court tomorrow.

Chaos erupted at LDV Showroom Parramatta on Church Street in Granville about 9.30am today when a seemingly disgruntled customer threatened dozens of customers inside.

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He then allegedly pulled out a hammer and chased them into the car park before pouring petrol on the showroom floor and setting it alight.

Customers and staff told 9News they feared for their lives.

"He's going to kill someone, that's what I thought," a witness who wished to stay anonymous told 9News.

The witness claimed the customer became frustrated after he was told he would have to pay for his second car service.

"He got a hammer out of his bag and he hit the front counter," the witness said.

"My partner who was with me nearly got hit with the hammer."

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The witness said the salesman fought off the man with anything in reach.

"He holds the seat, he's trying to push the salesman backward," the witness said.

A woman was treated at the scene for smoke inhalation.

The showroom staff were able to extinguish the fire before emergency services arrived.

The 69-year-old man was arrested at the scene and taken to Merrylands police station.

He was charged with three counts of using an offensive weapon to commit an indictable offence, three counts of common assault, malicious damage and damaging property by fire.

He's due to face Parramatta Local Court tomorrow.