Subi Philip, a cardiac nurse in County Antrim, was asleep with her two daughters, aged 8 and 10, when they were woken up with a loud bang and ran out to see the vehicle was on fire.
Chief Inspector John Allen from the Police Service of Northern Ireland said "We believe that the attack was motivated by racial hatred. Any attack on property is unacceptable, however I totally condemn the racial hate crime element of this attack, which makes it particularly repugnant".
Philip's husband, also a nurse at Antrim Area Hospital, is currently in India attending the funeral of his father.
"I am in complete shock. My girls were sleeping in the upstairs room right next to the car that went on fire. The side of the house was on fire and I was very afraid of what could happen," she told the 'Belfast Telegraph'.
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There are 60 Indian families in Antrim who all work in the hospital and are a close-knit community in the area, the newspaper reported.
Philip said "Who would do this? Why would they do this? We work hard and harm no one. I am still in deep shock and I worry for my girls.
The family's new car was destroyed and damage was caused to the house with its windows melted.