A spokesman for East Sussex Fire and Rescue Service said: "We were called at 1.11pm to a car fire in Fairlight Road. It was well alight when we got there."
Fire crews used breathing apparatus, foam and one hose reel to put the fire out.
There were no casualties.
Chris Sanderson, who lives near to where the incident took place, described it as 'quite spectacular' and said the fire service arrived on the scene within three minutes.
She said: "I was in my house and I saw billows of smoke and I thought someone had lit a fire somewhere. Then there was a big bang - [the car's] diesel tank had exploded."