Police have identified a person of interest as they investigate the apparent firebombing of a vehicle with a Hanukkah decoration in Melbourne's south-east early on Christmas Day.

Axar.az informs, citing ABC Televison, emergency services arrived in Balaclava Road, St Kilda East at 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.

Rabbi Effy Block, from the Chabad of St Kilda, said he had been in contact with the affected family, which included another rabbi.

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

About lunchtime, police confirmed they had identified "a person who may be able to assist with their investigation".

Detectives are trying to find that person.