Dramatic images show a car up in flames yards away from family homes.
The fire is believed to have been "ignited deliberately" and police are appealing for information.
The incident happened at Cil-y-Coed, near Ystrad Road, in Waunarlwydd, Swansea at around 12.22am on Tuesday, April 7.
Eyewitness and local resident Ritchie Rees described how he heard several loud bangs before emergency services arrived.
"It was just 50 yards from the rear of a row of houses in Cil-y-Coed, Waunarlwydd with an occupancy of young families with small children," he said.
"Several explosions were heard before the fire brigade promptly arrived and brought the blaze under swift control."
A spokesman for Mid and West Wales Fire Service said: "On Tuesday, April 7 at 12.22am, firefighters from Swansea West responded to a vehicle fire in Cil-y-Coed, Waunarlwydd, Swansea.
"The crew utilised a hose reel jet and a breathing apparatus to extinguish the car fire.
"The fire is believed to have been ignited deliberately and has been reported to the Police.
"The Fire Service left the incident at 12:59am."
This comes shortly after the fire service appealed to the public to help them stop preventable fires, which increase strain on emergency services during the coronavirus pandemic.
A spokeswoman for South Wales Police said: "We were made aware of a car fire in Ystrad Road by the fire and rescue service at 12.50am this morning.
"Enquiries are ongoing and if anyone has any information they can contact 101 quoting occurrence 2000116455."
