New cab or minicab gutted by explosion in transport (3,4)

I believe the answer is:

car bomb

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'explosion in transport' is the definition.
The answer and definition can be both man-made objects as well as being singular nouns.
Perhaps they are linked in a way I don't understand?

'new cab or minicab gutted' is the wordplay.
'new' indicates an anagram.
'gutted' suggests removing the centre (to gut something is to remove its insides).
'minicab' with its centre taken out is 'mb'.
'cab'+'or'='cabor'
'cabor' anagrammed gives 'carbo'.
'carbo'+'mb'='CAR BOMB'

'by' is the link.

Can you help me to learn more?

(Other definitions for car bomb that I've seen before include "Vehicle packed with explosives and primed" , "Vehicle-based weapon" , "In estate one might be let off" .)

I've seen this clue in the Sydney Morning Herald.

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