Cars constantly have to start and stop, trains don't. Cars have to go up and down hills; trains follow elevation contour lines and rarely encounter inclines. When they do, it is normally gentle and constant.
For these reasons, the diesel electric can maintain a constant output without having to rev up and down. The energy required to take a 4 locomotive, 100 car, mile long train from stationary to full speed is astounding. With a direct drive, the number of gears required would be almost unworkable. The electromagnetic fields in the generator and motors allow them to spin at variable ratios, whereas geared drive systems require the engine and propulsion wheels to to rotate at a constant ratio, which changes when the gear changes. With such a huge inertia to overcome from a stationary start, the diesel electric is far more efficient than a geared direct drive. It takes considerable time to reach cruising velocity, and once that velocity is reached, the diesel electric, cruising at constant speed on flat ground, has an efficiency that is far beyond any car or truck. It also takes a train a mile to come to an emergency stop. Planned stops are considerably longer.
The operating conditions between a car and train differ so much that the car is not able to have a proportionately smaller diesel electric propulsion system. Perhaps some type of diesel electric will be possible some day if ultra-capacitors can be perfected. but matching the proportions and efficiency of the locomotive would be highly improbable.