A STOLEN black Hyundai Kona SUV has been set on fire in a basement at Grazier Lane, Belconnen.

On Monday, police saw the stolen Hyundai, with stolen number plates, driving in Latham.

Officers deployed stop sticks, however it continued to drive with deflated tyres and failed to stop for police, who gave up pursuing the car out of concern for public safety.

About 11pm, police received reports of the car being set alight in a basement, with ACT Fire & Rescue on site to extinguish the blaze.

The fire alarm was activated and all apartment blocks, as well as a hotel in Grazier Lane, were evacuated.

Anyone with information should contact police on 1800 333000.