Video: Blaze at Ryton scrapyard
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Some 40 scrap cars were said to be on fire and six fire crews including firefighters from Leamington and Kenilworth have attended the incident.
The blaze is taking place at Whites of Coventry.
Firefighters at the scene have said that the fire is now under control but that it may take some time to be extinguished completely.
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Hide AdWarwickshire Fire and Rescue Service have said: "We received a call at 1.30pm this afternoon regarding a fire at Whites of Coventry Ltd in Ryton-on-Dunsmore.
"six appliances have attended the incident which involves 30-40 scrap vehicles on fire.
"The fire is still ongoing."