There were no occupants in, or from the vehicle, when emergency crews arrived on the scene just before 7am which was about 200m east of the Ballarat Racecourse entrance.

Miners Rest fire captain Richard Ross said it was possible that the vehicle had been stolen and the occupant or occupants had run off before fire crews arrived.

He said investigations were continuing as to whether the car became engulfed after going into the trees or was set alight once it was in the trees.

It is believed another car may have been following the vehicle and the occupants of both vehicles may have fled the scene together.

"We were originally called to a washaway and a tree on fire, it's never a nice situation to have to come and possibly someone trapped when the car is engulfed," he said.

Kennedys Road remains blocked to traffic as emergency crews work to remove the vehicle.

Witness are being sought and anyone with information is asked to contact Crime Stoppers on 1800 333 000.

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