An Indian man who told police he was set on fire by a group of men in Essendon, in Melbourne's north-west, has faced an out-of-sessions court hearing charged with making a false report to police.

Jaspreet Singh told police he was approached by four men and set on fire as he moved his car in Slater Street on January 8.

Police claim the 29-year-old accidentally set himself on fire while trying to set his car on fire.

Singh was treated for burns to 15 per cent of his body.

He will return to court in March to face charges of making a false report to police and criminal damage with a view to gain financial advantage.

The fire occurred a week after 21-year-old Indian man Nitin Garg was stabbed to death on his way to work in West Footscray.

The incidents have sparked outrage in India and among Indians in Melbourne, who say racist attacks are on the rise.