Police are investigating after a car with a “Happy Chanukah” sign was set alight in Melbourne’s south-east early on Christmas Day. 

Emergency services arrived in Balaclava Road, St Kilda East about 2:50am to find the vehicle on fire. 

The unoccupied car had a mobile billboard reading “Happy Chanukah!” mounted on its roof.

Chanukah, also spelled Hanukkah, is the name for the eight-day Jewish festival of lights.

No injuries have been reported, but the occupants of a nearby house were evacuated as a precaution. 

Burnt out car

The vehicle sustained significant damage in the incident overnight. (Facebook)

Rabbi Effy Block, from the Chabad of St Kilda, said he had been in contact with the affected family, who were safe.

“They are OK but the car is destroyed,” he said.

He condemned the fire as “another shocking antisemitic attack on the Jewish community”.

Police say the incident is being treated as suspicious and have identified a person “who may be able to assist with their investigation”.

The St Kilda East fire comes 11 days after two gunmen opened fire on the Chanukah by the Sea event at Bondi Beach, killing 15 people.

Authorities urge anyone with information to contact Crime Stoppers online or on 1800 333 000.