That is actually not true. Trains and large mining vehicles and equipment use a diesel-electric transmission system. 100% of the power flow from engine to wheels is converted to electricity, run through cables, and powers large drive motors. No batteries.
Hybrids, OTOH, split power. Some of it is used to drive a mechanical transmission and driveshaft down to the wheels, and the rest is stored in batteries if they are discharged. Once the batteries are charged, 100% of the power to drive the vehicle goes through the mechanical system. As needed, power can be pulled from the batteries and drive an electric motor to help propel the vehicle. That can be sustained until the batteries run out, then the vehicle is stuck with only mechanical power until the batteries can be recharged. Primarily, a hybrid tries to run from mechanical power as it's more efficient. The job of the motor and battery system is to make the drive train feel powerful in short bursts, but still get away with using a small engine. Really, the big reason these hybrid vehicles get better mpg is because they use anemic engines.
That's why an old econobox car with a traditional drivetrain and a wimpy engine can outdo a Prius for mileage. But the Prius is more comfy and has better acceleration.
A diesel-electric drive is inherently inefficient. They're used in applications where a mechanical system would be impractical, too expensive, or not reliable enough. No way you'd gain anything putting one in a car or truck.