It is a component of a drivetrain that allows the wheels on an axle to turn at different speeds. It is commonly used in vehicles that have four-wheel drive or rear-wheel drive, such as cars, trucks, and SUVs.

The differential gearbox is located between the drive wheels of an axle and is usually integrated with the axle housing. It is composed of a set of gears that mesh together and allow for a difference in rotational speed between the two wheels.

When a vehicle turns, the inside wheel has to travel a shorter distance than the outside wheel. Without a differential gearbox, the wheels would be forced to rotate at the same speed, which would cause binding and eventually damage to the drivetrain. The differential gearbox allows the inside wheel to rotate slower than the outside wheel, which prevents binding and damage.