Taxonomy parent terms - pathauto
After testing out for a day various combinations it was a problem with a view page that had path same as taxonomy/term/1.

So I renamed the view page path to car/bmw12, deleted taxonomy aliases and recreated them. 

It was easy thing to do. I did not think of it earlier as i was lead by assumption that when you use pathauto to recreate paths it would do it for terms no matter if the path was taken in views already.