One appliance from the Isle of Wight Fire and Rescue Service was called to the scene shortly before 07:50 following reports that a car, a Vauxhall Zafira, had caught fire.
Firefighters from nearby Shanklin Fire Station have brought the blaze under control, however the road remains closed to traffic in both directions.
Motorists are being diverted via Highfield Road.
UPDATE @ 08:42 – Victoria Avenue has now reopened.
Photo: Jo White