I mean yeah you could interpret it like that and that’s completely valid, but to me it seems like more of a leap than “baking is wild” which works in the context just as well. I guess “baking as wild” would be be saying that “the car is [like] an oven and baking as wild[ly as an oven does]”, but in the other — widely accepted — version of the line, it’s two separate declarations that hinge together as one sentence. “The car is an oven“ (metaphor) “and baking is wild” (baking is taking place currently; aka, it’s hot as hell in this car).
You're probably right with your interpretation, it just never occurred to me to read the line this way. And I guess I'm not the only one, considering I've been reading complaints about the line for almost 20 years now. Which, I think, just means it's not a terribly well-written lyric.