The vehicle was taken from a property in the Derrybeg area of the city.
It was driven recklessly, damaging other vehicles in the process.
Sinn Féin representative, Aidan Mathers, condemned what he described as “serious anti-social behaviour”.
The Newry City representative said: “Last night there was a car stolen in the Newry area and driven recklessly through Derrybeg.
“A number of local people had their own cars damaged by this thoughtless act.
“This is serious anti social behaviour that has absolutely no place in our community.
“The stolen vehicle was recovered in the Bessbrook area and I would encourage anyone with information to bring it forward to the police.”