Ian Jones, aged 64, was driving along Burngreave Road, towards the Wicker, at around 7.45am on Monday after picking-up his two-year-old grandson.
As he approached the traffic lights at Spital Hill, Ian said a woman was blocking the road, forcing him to get out of his vehicle.
Ian, of Gleadless, said: “This lady was dancing in the middle of the road in fairy land, on drugs or something.
“I got out the car and told her ‘you need to move or you’ll get run over’, but she wouldn’t.”
Ian said he went to the car behind to say they weren’t going anywhere – but then noticed a man jumping into his car.
He said: “This bloke jumped in and drove off. I couldn’t believe it. My two-year-old grandson was still in the back.
“It was truly terrifying – I was worried sick for my grandson. That’s the only thing I was thinking about.
“I ran after my car and a van driver, who had seen what was happening, drove into the road to block his path. But he forced his way through.”
Ian said he ended up trapped between the van and his Range Rover for a brief time, causing him injuries.
He said: “I’m lying in the middle of the road, black and blue, in real pain watching my car being driven off with my grandson in the back.
“I’ve never been so scared. I didn’t care about the car, or me, I just wanted my grandson to be safe.”
Ian phoned 999 immediately, fearing the worst for his grandson.
He said: “This bloke must have realised my grandson was in the back, though, because he abandoned the car nearby and ran off.”
Fortunately, Ian’s grandson was unharmed. But Ian has sustained significant injuries to his hands and arms, and fears his hands are permanently injured.
Ian, who lives with wife Kath, also 64, said: “The main thing is that my grandson is safe. But it was a close call and I feel lucky things turned out the way they did.”
A spokesman for South Yorkshire Police said: “Police were called to an incident on Burngreave Road at about 7.45am on Monday, June 20.
“It was reported that a 64-year-old man had his car, a gold Range Rover, stolen.
“The driver briefly got out of the car and a man unknown to him has then got into the Range Rover, before driving off. The owner of the car suffered some injuries as the car was driven off. It was later found on Brunswick Road. A man and two women have been arrested in connection with the incident and remain in police custody.”
Anyone with information is asked to call 101, quoting incident 174 of June 20.