Cyfronydd Powys Wales United Kingdom - An investigation is underway after the incident which happened at around 11:45, Thursday, on the Welshpool & Llanfair Light Railway (W&L) line.
The 823 "Countless" locomotive was passing over the level crossing at Cyfronydd Station when it collided with a red Chevrolet car.
The driver of the car escaped unharmed, along with the 77 passengers and crew on board the train, however significant damage was caused to the car and the locomotive.
Operations were suspended and Dyfed-Powys Police attended the scene.
The Rail Accident Investigation Branch (RAIB) was informed and despite being cleared to resume operations, services for the remainder of Thursday were cancelled and passengers were taken on buses back to different stations.
Andrew Charman, of W&L, said a full investigation will now take place to establish the facts surrounding the incident.
He said, "Thankfully the incident resulted in no injuries to the driver of the car, the locomotive crew, or the 77 passengers and staff on the train. Following consultation with the RAIB, the W&L was permitted to resume operations. However the rest of the day's services were cancelled while stock involved in the incident was returned to Llanfair Caereinion. The W&L organized road coaches to return the train's passengers to their station of origin. The W&L has begun a full investigation into this incident. Until this investigation is concluded, no further public comment will be made on the incident."
A spokeswoman for Dyfed-Powys Police added, "Dyfed-Powys Police received a report of a collision between a car, a red Chevrolet Spark, and a steam engine at Cyfronydd railway crossing, at 11:50 on Thursday. The road was blocked as a result and reopened at around 15:00. No injuries were reported."
The incident happened less than two weeks after the railway opened its eight-mile track from Welshpool to Llanfair for its 55th season as a heritage line.
Jonny Drury.