The body found in the back seat of a burnt-out Holden Commodore in Melbourne's south-east is believed to be that of a man with a "history of drug involvement", police say.
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Homicide detective Senior Sergeant Stuart Bailey told reporters on Friday the car was registered to a 40-year-old Doveton resident who was known to police.
"The owner of that car is yet to be seen," he said.
The red 2011 SV6 Holden Commodore was found alight in Olive Road Reserve at Eumemmerring about 11.50pm on Thursday, after residents reported hearing a "massive explosion".
Firefighters made the grisly discovery after extinguishing the blaze and homicide detectives were called to the scene soon after.
The crime scene was cordoned off on Friday morning, while pathologists, arson chemists and crime scene detectives examined the body and the car.
The sedan was dumped in a car park near a playground at the reserve off Frawley Road.
The man's body was removed from the car about 9.30am.
Senior Sergeant Bailey stressed the man had not yet been formally identified, although he was believed to be the owner of the car.
"Due to the nature of the fire and the seriousness of it, [the body] is unrecognisable and we can't identify him," he said.
"We're really going to rely on dental and DNA records to try and identify this person given the nature of his injuries...and how badly he's been burnt."
The identification process could take days, he said.
It is unclear whether the man had died as a result of the fire, although it is hoped an autopsy to be carried out on Friday afternoon will determine his cause of death.
Sergeant Bailey said police would investigate whether drug dealing could have played a role in the suspected homicide, if the man was found to be the owner of the car.
 
Nearby residents have told police they saw a white hatchback drive into the reserve while the car was on fire. Sergeant Bailey said police had spoken to the driver of the hatchback, who also reported seeing the Holden Commodore alight.
A woman, who requested to be known only as Anna, lives on Olive Road only a few hundred metres from where the burning car was found.
She said she had been watching television late on Thursday night when she heard a "massive explosion", followed by other explosions.
She said she went to her front window and saw a dark-coloured car reversing out of the street.
Anna said she was not sure how many people were inside the car.
Another resident Peter, who also declined to give his last name, said the reserve was not lit at night.
"You don't want to go down there in the evening," he said.
Peter said people often dumped rubbish at the reserve at night and he believed drug dealers frequented the area.
"It's very dangerous," he said, adding that he walks around the reserve rather than through it to get to his bus stop on Frawley Road.
Detectives would view footage captured on CCTV cameras located at a nearby netball stadium during their investigation, Sergeant Bailey said.
Police have appealed for anyone who was in the area about 11.45pm on Thursday to come forward.
Anyone with any information is urged to call Crime Stoppers on 1800 333 000.
