Crews from Grafton Fire and Rescue 306 Station attended the scene of a fire in Smith Street, Grafton, shortly after 3am on May 8.
Upon arrival they observed a vehicle, a Hyundai i30, well alight.
Grafton Fire and Rescue 306 Station Deputy Captain Chris Rumpf said the blaze was quickly extinguished.
No injuries occurred as a result of the fire and no neighbouring properties or vehicles were under threat.
Coffs/Clarence Police District Chief Inspector Joanne Reid told the Clarence Valley Independent the incident is believed to be connected to a number of other stolen vehicles in and around the Grafton area during previous months.
She said between 2:30am and 3:05am on May 8, unknown persons broke into a Grafton residence in Kinnear Court while the occupant was sleeping, and stole a purse containing a sum of money and a set of keys which were then used to steal the occupants Hyundai i30.
She confirmed Police have already made several arrests and identified additional suspects responsible.
Further arrests are anticipated.
Chief Inspector Reid said 30 percent of vehicles stolen in the Coffs/Clarence Police District this year have occurred as a result of keys being left in the vehicle or close to an entry point of a residence where doors were left unlocked.
In some instances, flyscreens were cut to gain access to properties.
Keys, wallets, and phones have also been stolen and fraudulent activity has also been reported on stolen credit cards.
Chief Inspector Reid is urging residents to ensure their vehicles are locked, their properties are secure, and valuables are not left near entry points.
Residents are also being urged to report any suspicious behaviour to Grafton Police on 6642 0222.