A man has been charged with murder after the shooting of an 18-year-old man in the NSW city of Newcastle.

Ekam Sahni died after he was shot in the chest at the Bar Beach carpark about 11.40pm on Wednesday.

About 11.20am today, a 22-year-old man was arrested at Newcastle Police Station and was later charged with murder.

Sahni, a Newcastle local, was shot after a fight between two groups of people at the beach car park.

Police allege during the fight, a white Volvo SUV pulled up, and a man armed with a rifle jumped out and fired shots, fatally hitting Sahni, before fleeing.

Paramedics treated the teenager but he died at the scene.

Police allege the white Volvo used in the shooting was stolen.

Police say it was later discovered burnt out about a 20 minute drive from the car park at Tingira Heights.

The 22-year-old was denied bail and is expected to appear before Parramatta Local Court tomorrow.

Police said their investigations under Strike Force Bolwarra is ongoing.