Motorsport: Scott McLaughlin holds off Kiwi rival Scott Dixon to earn IndyCar podium at Iowa

Kiwi Scott McLaughlin has edged compatriot Scott Dixon in an exhilarating duel to claim a podium finish in the second race of the IndyCars doubleheader at Iowa.

McLaughlin fended off Dixon's late push to be the third car across the finish-line, after winner Pato O'Ward of Mexico and Australian Will Power.

American Josef Newgarden seemed destined to back up his win in Sunday's opening race and take the outright championship lead, until suspension failure saw him crash out of contention with 62 of the 300 laps remaining.

When the track was cleared of debris, Dixon was well poised to strike, after working his way ahead of McLaughlin in pitrow.

But the ex-Supercars champion got the better of the veteran six-time champion at the restart to move into third - a position he would retain for the remainder of the race.

"The car felt good today," McLaughlin told NBC Sports. "That last restart... I had a go and threw it around the side of Scott Dixon.

"He's not an easy guy to do that to."

Nevertheless, Dixon will be satisfied with his performance, securing fourth place from an 18th-place start on the grid, while advancing from fifth to third in the overall championship standings. McLaughlin remains seventh.

"It was a little frustrating on the restarts," Dixon said. "I tried to attack on the last one, but couldn't quite pull it off.

"I had a lot of racing with my fellow Kiwi and well done to him.

"I think that long haul in the middle of the race helped me overall. We got some good points."

The pair will lock horns again next weekend on the Indianapolis road course.